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Multiple Production Department Factory Overhead Rates Gwinnett County Chrome Company manufactures three chrome-plated productsautomobile bumpers,valve covers, and wheels. These products are manufactured in two production

Multiple Production Department Factory Overhead Rates

Gwinnett 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 Gwinnett County Chrome is $239,200.

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

Direct Labor Hours Machine Hours
Stamping Department
Automobile bumpers 590 810
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
590 2,600
Total 1,840 4,600

The management of Gwinnett County Chrome Company now plans to use the multiple production department factory overhead rate method. The total factory overhead associated with each department is as follows:

Stamping Department $120,000
Plating Department 104,000
Total $224,000

Required:

1. Determine the multiple production department factory overhead rates, using direct labor hours for the Stamping Department and machine hours for the Plating Department.

Stamping Department $ per direct labor hour
Plating Department $ per machine hour

2. Determine the product factory overhead costs, using the multiple production department rates in (1).

Automobile bumpers Valve covers Wheels
Stamping Department $ $ $
Plating Department
Total factory overhead $ $ $

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