Daisy Dairy Company manufactures three productswhole milk, skim milk, and creamin two production departments, Blending and Packing.

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Daisy Dairy Company manufactures three products€”whole milk, skim milk, and cream€”in two production departments, Blending and Packing. The factory overhead for Daisy Dairy is $360,000. 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 290 720 Skim milk 270 790 Cream 240 290 1,800 800 Packin


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.

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Related Book For  book-img-for-question

Financial and Managerial Accounting Using Excel for Success

ISBN: 978-1111993979

1st edition

Authors: James Reeve, Carl S. Warren, Jonathan Duchac

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