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 $362,600.

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

Direct Labor HoursMachine Hours

Blending Department

Whole milk390 930

Skim milk420 840

Cream330 340

1,140 2,110

Packing Department

Whole milk480 600

Skim milk750 750

Cream220 240

1,450 1,590

Total2,590 3,700

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$ 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 MilkSkim MilkCream

Direct labor hours$$$

Machine hours$$$