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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
Transcribed Image Text: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
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