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 $392,000.

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

Line Item Description	Direct Labor Hours	Machine Hours
Blending Department
Whole milk	300	770
Skim milk	330	700
Cream	250	270
Sub total	880	1,740
Packing Department
Whole milk	360	400
Skim milk	560	500
Cream	160	160
Sub total	1,080	1,060
Total	1,960	2,800

Required:

a. 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. i. Direct labor hour overhead rate $_____ per direct labor hour ii. Machine hour overhead rate $_______per machine hour

b. 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.

Line Item Description	Whole Milk	Skim Milk	Cream
Direct labor hours
Machine hours