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Single Plantwide Factory Overhead Rate Spotted 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 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 $226,800. 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 Skim milk Cream 290 700 310 640 250 250 850 1,590 Packing Department Whole milk 340 420 Skim milk 540 520 Cream 160 170 1,040 1,110 Total 1,890 2,700 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 b. Machine hour overhead rate per direct labor hour 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. Skim Milk Direct labor hours Machine hours Whole Milk 100 Cream
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