Question
Single Plantwide Factory Overhead Rate Spotted Cow Dairy Company manufactures three productswhole milk, skim milk, and creamin two production departments, Blending and Packing. The factory
Single Plantwide Factory Overhead Rate
Spotted Cow Dairy Company manufactures three productswhole milk, skim milk, and creamin two production departments, Blending and Packing. The factory overhead for Spotted Cow Dairy is $184,800.
The three products consume both machine hours and direct labor hours in the two production departments as follows:
Direct Labor HoursMachine HoursBlending DepartmentWhole milk190590Skim milk210540Cream1702105701,340Packing DepartmentWhole milk250330Skim milk390400Cream110130750860Total1,3202,200
Required:
1.Determine the single plantwide factory overhead rate, using each of the following allocation bases: (a) direct labor hours and (b) machine hours. If required, round all amounts to the nearest dollar.
a. Direct labor overhead rate$per direct labor hourb. 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 MilkSkim MilkCreamDirect labor hours$$$Machine hours$$$
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