The management of Spotted Cow Dairy Company, described in Problem now plans to use the multiple production department factory overhead rate method. The total factory overhead associated with each department is as follows:

Blending Department .........$ 178,200

Packing Department ........ 121,500

Total ...............$ 299,700

Instructions

1. Determine the multiple production department factory overhead rates, using machine hours for the Blending Department and direct labor hours for the Packing Department.

2. Determine the product factory overhead costs, using the multiple production department rates in (1).