Orange County Chrome Company manufactures three chrome-plated productsautomobile bumpers, valve covers, and wheels. These products are manufactured in two production departments (Stamping and Plating). The factory overhead for Orange County Chrome is $215,226.

The three products consume both machine hours and direct labor hours in the two production departments as follows:

	Direct Labor Hours	Machine Hours
Stamping Department
Automobile bumpers	563	805
Valve covers	303	556
Wheels	340	596
	1,206	1,957
Plating Department
Automobile bumpers	174	1,168
Valve covers	177	713
Wheels	172	756
	523	2,637
Total	1,729	4,594

The management of Orange County Chrome Company now plans to use the multiple production department factory overhead rate method. The total factory overhead associated with each department is as follows:

1	Stamping Department	$109,746.00
2	Plating Department	105,480.00
3	Total	$215,226.00

	Required:
1.	Determine the multiple production department factory overhead rates, using direct labor hours for the Stamping Department and machine hours for the Plating Department.
2.	Determine the product factory overhead costs, using the multiple production department rates in (1).

Amount Descriptions

Amount Descriptions
Activity-base usage
Activity rate
Direct materials
Plating Department
Stamping Department
Total

Overhead Rates

1. Determine the multiple production department factory overhead rates, using direct labor hours for the Stamping Department and machine hours for the Plating Department.

Stamping Department:	per direct labor hour
Plating Department:	per machine hour

Product Factory Overhead Costs

2. Determine the product factory overhead costs, using the multiple production department rates in (1).

1		Automobile Bumpers	Valve Covers	Wheels
2
3
4	Total