PR 18-1A Single plantwide factory overhead rate

1. b. $52 per machine hour

Obj. 2

Gwinnett County Chrome Company manufactures three chrome-plated productsautomobile bum-pers, valve covers, and wheels. These products are manufactured in two production departments (Stamping and Plating). The factory overhead for Gwinnett County Chrome is $239,200. The three products consume both machine hours and direct labor hours in the two production departments as follows:

Direct Labor Hours

Stamping Department Automobile bumpers

Valve covers Wheels

Plating Department Automobile bumpers

Valve covers Wheels

Total

590 310 350

1,250

195 200 195 590

1,840 Machine Hours

810 570 620

2,000

1,150 700 750

2,600 4,600

Instructions 1. Determine the single plantwide factory overhead rate, using each of the following allocation bases: (a) direct labor hours and (b) machine hours.

2. Determine the product factory overhead costs, using (a) the direct labor hour plantwide factory overhead rate and (b) the machine hour plantwide factory overhead rate