Reference no: EM132690695

Problem - Single plantwide factory overhead rate - California Chrome Company manufactures three chrome-plated products-automobile bumpers, valve covers, and wheels. These products are manufactured in two production departments (Stamping and Plating). The factory overhead for California Chrome is $338,400.

The three products consume both machine hours and direct labor hours in the two production departments as follows:

	Direct Labor Hours	Machine Hours
Stamping Department
Automobile bumpers	700	940
Valve covers	380	680
Wheels	420	720
	1,500	2,340
Plating Department
Automobile bumpers	200	1,460
Valve covers	210	890
Wheels	205	950
	615	3,300
Total	2,115	5,640

Instructions -

1. Determine the single plantwide factory overhead rate, using each of the following allocation bases: (a) direct labor hours.

1. Determine the single plantwide factory overhead rate, using each of the following allocation bases: (b) machine hours.

2. Determine the product factory overhead costs, using (a) the direct labor hour plantwide factory overhead rate.

2. Determine the product factory overhead costs, using (b) the machine hour plantwide factory overhead rate.