Gwinnett County 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 Gwinnett County Chrome is $239,200.

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

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

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

Transcribed Image Text:

Direct Labor Hours Machine Hours Stamping Department Automobile bumpers 810 590 Valve covers 310 570 Wheels 350 620 1,250 2,000 Plating Department Automobile bumpers 195 1,150 Valve covers 200 700 Wheels 195 750 2,600 4,600 590 Total 1,840