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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 $290,500. 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 770 Skim milk 560 360 280 1,200 Cream 1,870 Packing Department Whole milk 1,100 Skim milk Cream 505 2,500 Total 4,370 1,705 The management of Spotted Cow Dairy Company now plans to use the multiple production department factory overhead rate method. The total factory overheid 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 $168,000 Packing Department 122,500 Total $290,500 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 Blending Department and machine hours for the Packing Department. Blending Department per 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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