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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

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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 $303,500 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 560 360 280 1,200 770 620 480 1,870 Packing Department Whole milk Skim milk Cream 170 180 155 505 1,705 1,100 680 720 2,500 4,370 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: 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 $156,000 147,500 $303,500 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 1ending Department and machine hours for the Packing Department. Blending Departmentper direct labor hour Packing Department 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 Packing Department factory overhead Total factory overhead

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