CH 26-1

Orange County Chrome Company manufactures three chrome-plated productsautomobile bumpers, valve covers, and wheels. These products are manufactured in two production departments (Stamping and Plating). The factory overhead for Orange County Chrome is $212,100.

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

Required:

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. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

Amount Descriptions
Activity-base usage
Activity rate
Direct labor hours
Direct labor overhead rate
Direct materials
Machine hour overhead rate
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. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

Direct Labor Hours Machine Hours Stamping Department 798 560 301 339 1,200 Automobile bumpers 557 Valve covers 599 Wheels 1,954 Plating Department 170 185 173 528 1,728 1,168 708 762 2,638 4,592 Automobile bumpers Valve covers Wheels Total