Single plantwide factory overhead rate Spotted Cow Dairy Company manufactures three products-whole milk, skim milk, and cream-in two production departments, Blending and Packing. The factory overhead for Spotted Cow Dairy is $277,200. The three products consume both machine hours and direct labor hours in the two production departments as follows: Blending Department Direct Labor Hours Machine Hours Whole milk 200 570 Skim milk 210 520 Cream 170 210 Sub total 580 1,300 Packing Department Whole milk 240 340 Skim milk 380 420 Cream 120 140 740 900 1,320 2,200 Sub total 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. Direct labor hour overhead rate $ Machine hour overhead rate $ per direct labor hour 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. Direct labor hours Machine hours Whole Milk Skim Milk Cream
Single plantwide factory overhead rate Spotted Cow Dairy Company manufactures three products-whole milk, skim milk, and cream-in two production departments, Blending and Packing. The factory overhead for Spotted Cow Dairy is $277,200. The three products consume both machine hours and direct labor hours in the two production departments as follows: Blending Department Direct Labor Hours Machine Hours Whole milk 200 570 Skim milk 210 520 Cream 170 210 Sub total 580 1,300 Packing Department Whole milk 240 340 Skim milk 380 420 Cream 120 140 740 900 1,320 2,200 Sub total 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. Direct labor hour overhead rate $ Machine hour overhead rate $ per direct labor hour 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. Direct labor hours Machine hours Whole Milk Skim Milk Cream
Chapter1: Financial Statements And Business Decisions
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