Question
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
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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 factory overhead for Spotted Cow Dairy is $451,600.
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 560 770 Skim milk 360 620 Cream 280 480 1,200 1,870 Packing Department Whole milk 170 1,140 Skim milk 180 700 Cream 155 760 505 2,600 Total 1,705 4,470 The management of Spotted Cow Dairy Company now plans to use the A method that allocates factory overhead to product by using factory overhead rates for each production department.multiple production department factory overhead rate method. The total factory overhead associated with each department is as follows:
Blending Department $228,000 Packing Department 223,600 Total $451,600 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 $ $ $
everything i tried originally was incorrect, im not sure where i went wrong.
e to search DOLL
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