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 $387,600.

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			300			930
Skim milk			330			840
Cream			250			340
			880			2,110
Packing Department
Whole milk			380			490
Skim milk			600			610
Cream			180			190
			1,160			1,290
	Total		2,040			3,400

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	$fill in the blank 1 per direct labor hour
b. Machine hour overhead rate	$fill in the blank 2 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	Cream
Direct labor hours	$fill in the blank 3	$fill in the blank 4	$fill in the blank 5
Machine hours	$fill in the blank 6	$fill in the blank 7	$fill in the blank 8