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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 Cowe 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 Slom milk Cream 650 710 Packing Department Whole mik Slom milk Cream Total The management of Spotted Cow Dalty Company now plans to use the multiple product partment factory overload method. The total factory overhead associated thach 5178.200 Blending Department Packing Department Required: 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 110 per machine hour Packing Department $ 75 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 1.500 5 73,100 $ 20,000 overhead padeng Department factory overhead 25,250 $100,750 x x 22,500 100,600 Total factory overhead X 38,350 X

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