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Single Plantwide Factory Overhead Rate 5potted Cow Dairy Company manufactures three products-whole milk, skim milk, and cream-in two production departments, Blending and Packing. The factory
Single Plantwide Factory Overhead Rate 5potted 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 $478,800. The three products consume both machine hours and direct labor hours in the two production departments as follows: Direct Labor Machine urs Hours Blending Department whole milk 390 950 skim milk 420 870 Cream 330 350 1,140 2.170 Packing Department whole milk 500 620 Skim milk 790 770 am 231 240 1.520 1.630 Total 2.660 3.800 Required: 1. Determine the single plantwide factory overhead rate, using each of the following allocation bases: (a) direct labor hours and (b) machine hours. If required, round all amounts to the nearest dollar. a, Direct labor overhead rate per direct labor hour b. Machine hour overhead rate per machine hour 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. whole Milk Skim Milk rean pirect labor hours Machine haurs Pdc Depardnent FacloY OvEread d 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 $396,000. 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 890 1,210 Skim milk 570 980 Cream 440 770 1,900 2,960 Packing Department whole milk 260 1760 Skim milk 280 1.060 Cream 260 1,160 900 4,000 Total 2.700 6,060 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 deparrtment is as follows: Blending Department $228,000 Packing Department 168,000 Total $396,000 Required: If required, round all amounts to the nearest dallar 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 millk Cream Blending Department factory overhead Packing Department factory overhead Total factory overhead Allalin lny ad Ainiiive Lpos dng Atisiig-lasl ding manufertures office runiers, which ere srid to retailers, The mice and cast f anotls ald frr ach unier ATe x frllows: Shrute Ir 740 per unit nands ld r ss prut 300 throc major nanmanufacturing ctvitics cuctomer senvice, sales crder processing dvertising supcort In addtion, the company inours scling and acminitrotwe cxperses of $210,220. The company wishe: to assign thesc cocts t Its threc major retall customers, The warchouse, Koemo Co, ard S.pply Universe. Thesc cxpences are related to advertiing support is In the torm of advertioements that are placed by Shrute Inc. to support the retalcrs sale of Shrute copicns to consumcrs. The budpctod actity cocts and actvity bases acodated with these actvites are: Activity vity Bse Budaete Activity Lu v 34.10 Sales ardar grocessing umber of salas orders 19,920 umber of ade placed Advcrtiking support LBG200 Total acttvity cost 240,220 .. Sunnbe Universe Number ot serviee requet n IG0 220 umber of saes anders 120 910 of wa dwl uml 10 110 140 an unit volums .P2L Required: 1. Delmine the uf the three nomanularthuring atisitis Bu d to the net whale dela tivity Rate Qslum vice Saies Crder Processing ner hid Advertising Support per oustomer design dhangs 7 Datermina the sctiitcnaty wlrcvead tnthe thr catemary uinn the artisite ratas in t) Actiyity Costs The Marwh Kostmo Co. Supply Univere amourts as coeltive numbers, except tor a nepatve Income trom operstione. 3 Construct cuetomer protitabilty reports tor the bhree cuctomers. doted tor the vear ended December 3, 2010, using the actvtty cocts In (21. The reports should discloee the gross prot and Income trom aperabions associated wth each customer Enter Curtrmer Drodtsbilty Benort Roue Cort ooode eoid a atris otve atn nver cooca. Saes crder artrin AC succort
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