Solution-Find the multiple production department factory

Find the multiple production department factory overhead

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Reference no: EM132500684

Multiple Production Department Factory Overhead Rates

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 $299,700.

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 milk 260 650

Skim milk245 710

Cream215 260 720 1,620

Packing Department

Whole milk470 500

Skim milk300 415

Cream130 165 900 1,080

Total1,620 2,700

The management of Spotted Cow Dairy Company now plans to use the multiple production department factory overhead rate method. The total factory overhead associated with each department is as follows:

Blending Department $178,200

Packing Department 121,500

Total $299,700

Required:

Question 1. Determine the multiple production department factory overhead rates, using machine hours for the Blending Department and direct labor hours for the Packing Department.

Reference no: EM132500684

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Find the multiple production department factory overhead

Reference no: EM132500684

Reference no: EM132500684

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