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Multiple Production Department Factory Overhead Rates Spotted Cow Dairy Company manufactures three productswhole milk, skim milk, and creamin two production departments, Blending and Packing. The

Multiple Production Department Factory Overhead Rates

Spotted Cow Dairy Company manufactures three productswhole milk, skim milk, and creamin two production departments, Blending and Packing. The factory overhead for Spotted Cow Dairy is $574,000.

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 710 960
Skim milk 450 770
Cream 340 610
1,500 2,340
Packing Department
Whole milk 210 1,540
Skim milk 220 950
Cream 200 1,010
630 3,500
Total 2,130 5,840

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 $315,000
Packing Department 259,000
Total $574,000

Required:

If required, round all amounts to the nearest dollar.

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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