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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.
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 milk 260 650 Skim milk 245 710 Cream 215 260 720 1,620 Packing Department Whole milk 470 500 Skim milk 300 415 Cream 130 165 900 1,620 1,080 2,700 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:
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