Reference no: EM132215621
Question - Single Plantwide Factory Overhead Rate
Spotted Cow Dairy Company manufactures three products-whole milk, skim milk, and cream-in two production departments, Blending and Packing. The factory overhead for Spotted Cow Dairy is $184,800.
The three products consume both machine hours and direct labor hours in the two production departments as follows:
Direct Labor Hours Machine Hours Blending Department Whole milk190 590 Skim milk210 540 Cream170 210 570 1,340 Packing
Department Whole milk250 330 Skim milk390 400 Cream110 130 750 860 Total 1,320 2,200
Required:
1. Determine the single plant wide factory overhead rate, using each of the following allocation bases: (a) direct labor hours and (b) machine hours. If required, round all amounts to the nearest dollar.
a. Direct labor overhead rate$ per direct labor hour b. Machine hour overhead rate$ per machine hour
2. Determine the product factory overhead costs, using (a) the direct labor hour plant wide factory overhead rate and (b) the machine hour plant wide factory overhead rate.