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Single Plantwide Factory Overhead Rate Spotted Cow Dairy Company manufactures three productswhole 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 productswhole milk, skim milk, and cream-in two production departments, Blending and Packing. The factory overhead for Spotted Cow Dairy is $455,700. The three products consume both machine hours and direct labor hours in the two production departments as follows: Direct Labor Machine Hours Hours Blending Department Whole milk 320 830 Skim milk 356 760 Cream 280 300 950 1,890 Packing Department Whole milk Skim milk 400 460 630 570 Cream 190 180 1,220 1,210 Total 2,170 3,100 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 hour b. 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 Milk Skim Milk Cream Direct labor hours $ $ Machine hours $
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