Gwinnett County Chrome Company manufactures three chrome-plated products—automobile bumpers,valve covers, and wheels. These products are manufactured in two production departments (Stamping and Plating). The factory overhead for Gwinnett County Chrome is $239,200. The three products consume both machine hours and direct labor hours in the two production departments as follows: Direct Labor Hours Machine Hours Stamping Department Automobile bumpers 590 810 Valve covers 310 570 Wheels 350 620 1,250 2,000 Plating Department Automobile bumpers 195 1,150 Valve covers 200 700 Wheels 195 750 590 2,600 Total 1,840 4,600 The management of Gwinnett County Chrome Company now plans to use the multiple production department factory overhead rate method. The total factory overhead associated with each department is as follows: Stamping Department $120,000 Plating Department 104,000 Total $224,000 Required: 1. Determine the multiple production department factory overhead rates, using direct labor hours for the Stamping Department and machine hours for the Plating Department. Stamping Department $fill in the blank 1 per direct labor hour Plating Department $fill in the blank 2 per machine hour 2. Determine the product factory overhead costs, using the multiple production department rates in (1). Automobile bumpers Valve covers Wheels Stamping Department $fill in the blank 3 $fill in the blank 4 $fill in the blank 5 Plating Department fill in the blank 6 fill in the blank 7 fill in the blank 8 Total factory overhead $fill in the blank 9 $fill in the blank 10 $fill in the blank 11
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Multiple Production Department Factory
Gwinnett County Chrome Company manufactures three chrome-plated products—automobile bumpers,valve covers, and wheels. These products are manufactured in two production departments (Stamping and Plating). The factory overhead for Gwinnett County Chrome is $239,200.
The three products consume both machine hours and direct labor hours in the two production departments as follows:
| Direct Labor Hours | Machine Hours | ||||||
| Stamping Department | |||||||
| Automobile bumpers | 590 | 810 | |||||
| Valve covers | 310 | 570 | |||||
| Wheels | 350 | 620 | |||||
| 1,250 | 2,000 | ||||||
| Plating Department | |||||||
| Automobile bumpers | 195 | 1,150 | |||||
| Valve covers | 200 | 700 | |||||
| Wheels | 195 | 750 | |||||
| 590 | 2,600 | ||||||
| Total | 1,840 | 4,600 |
The management of Gwinnett County Chrome Company now plans to use the multiple production department factory overhead rate method. The total factory overhead associated with each department is as follows:
| Stamping Department | $120,000 |
| Plating Department | 104,000 |
| Total | $224,000 |
Required:
1. Determine the multiple production department factory overhead rates, using direct labor hours for the Stamping Department and machine hours for the Plating Department.
| Stamping Department | $fill in the blank 1 per direct labor hour |
| Plating Department | $fill in the blank 2 per machine hour |
2. Determine the product
| Automobile bumpers | Valve covers | Wheels | |||
| Stamping Department | $fill in the blank 3 | $fill in the blank 4 | $fill in the blank 5 | ||
| Plating Department | fill in the blank 6 | fill in the blank 7 | fill in the blank 8 | ||
| Total factory overhead | $fill in the blank 9 | $fill in the blank 10 | $fill in the blank 11 |
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
