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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
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 $453,600.
The three products consume both machine hours and direct labor hours in the two production departments as follows:
Blending Department Whole milk Skim milk Cream 320 340 270 930 930 850 340 2,120 Packing Department Whole milk Skim milk Cream 410 640 180 1,230 2,160 560 700 220 1,480 3,600 Total 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 b. Machine hour overhead rate 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 per direct labor hour per machine hour Whole Milk Skim Milk Cream Direct labor hours Machine hours
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