eBook 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 Dalry is $538,400 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 800 1,090 Skim milk 510 870 Cream 390 690 1,700 2,650 Packing Department Whale milk Skim milk 240 250 1,630 1,000 1,070 Cream 225 215 3,700 6,350 Total 2,415 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 Pacing Department 5272,000 266,400 $538,400 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 the Packing Department Blending Department 210 X per direct labor hour Packing Department 74 X per machine hour 2. Determine the product factory overhead costs, using the multiple production department rates in (1) Whole milk Skim milk Cream Blending Department factory overhead 117,600 X Packing Department factory Overhead 84,350 X Total factory overhead 201,960 x Feed