Single plantwide factory overhead rate

Orange County Chrome Company manufactures three hrome-plated product-- automobile bumpers, valve covers, and wheels. These products are manufactured in two production departments (Stamping and Plating). The factory overhead for Orange County Chrome is $220,800.

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

Direct Labor Hours Machine Hours

Stamping Dept.

Automobile bumpers 560 800

Valve covers 300 560

Wheels 340 600

1,200 1,960

Plating Dept.

Automobile bumpers 170 1,170

Valve covers 180 710

Wheels 175 760

525 2640

Total 1,725 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.