eBlook 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 $487,300. 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 Skim milk Cream Lt 850 540 410 1,800 1,150 930 730 2,810 Packing Department Whole milk 250 260 245 755 2,555 1,800 1,110 1,190 4,100 6,910 Skim milk Cream Total 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 Packing Department $270,000 217,300 $487,300 Total Required: If required, round all amounts to the nearest dollar 1. Determine the multiple production department factory overhead rates, using direct labor hours for the Blending Department and machine hours for Blending Department Packing Department { 2. Determine the product factory overhead costs, using the multiple production department rates in (1). 110 X per direct labor hour 50 X per machine hour Whole milk Skim milk Cream Check My \ork 1,190 4,100 6.910 Cream 245 755 2,555 Total The management of Spotted Cow Dairy Company now plans to use the mutole production departmient factory overthead ate method. The to $270,000 217,300 $487,300 Blending Department Packing Department Total Required: If required, round all amounts to the nearest dollar. )1. Determine the multiple production department factory overtead rates, using direct lsbor hours for the Blending Department and machine h (-110) X Blending Department Packing Department per direct labor hour 50 X per machine hour ine the product factory overhead costs, usino the multiple production department rates in (3) Whole milk Skim milk Cream Blending Department factory overhead Packing Department factory overhead Total factory overhead 198,000 X Feedbock 1. Calculate for each department Total department overhead-total activity base - Department rate 2. Calculate for each product Actvity base-usage x Activity Rate from Req. (1)- Actvity cost for each activity Then sum al activity costs per product to determine a total overhead for each product Learning Objective 3 Check My Work