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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.

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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 $299,700. 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 mik 260 650 Skim milk Cream 245 7101 215 260 720 1,620 Packing Department Whole mik 470 500 Skim mik 300 415 Cream 130 Tytal 900 1,620 165 1,000 2,700 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: $178,200 121,500 Blending Department Packing Department Total Required! $299,700 1. Determine the multiple neoduction department factory overhead rates, using machine hours for the Bending Denactment and direct labor hours for the Farkine Demet Packing Department Total Required: 121,500 $299,700 1. Determine the multiple production department factory overhead rates, using machine hours for the Blending Department and direct labor hours for the Packing Department. Blending Department Packing Department 110 per machine hour 135 X per direct labor hour 2. Determine the product factory overhead costs, using the multiple production department rates in (1). Whole Milk Skim Milk Cream Blending Department factory 71,500 78,100 28,600 overhead Packing Department factory overhead Total factory overhead x x x 106,750 X 100,600 X 38,350 X

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