Single plantwide factory overhead rateSpotted 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 $441,000.The three products consume both machine hours and direct labor hours in the two production departments as followsDirect LaborHoursBlending DepartmentWhole milkSkimmiCreamSub tatalPacking DepartmentWhole milkSkim mikCreamSub totalTotalDirect labor hour overhead rate sMachine hour overhead rate3103302609004006201001,2002,100Direct labor hoursMachine hoursMachineHoursper machine hour9508703502,170Required:1. Determine the single slentwise 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.per direct labor hour$106301901,3303,5002. Determine the product factory overhead costs, using (e) the direct labor hour plantwide factory overhead rate and (b) the machine hour plantwide factory overhead rateWhole MilkSkim MilkCream

Factory overhead costs are those costs which are indirectly incurred for the manufacturing of…

mmx, and cream-in two production part The three products consume both machine hours and direct labor hours in the two production departments as follows Direct Labor Machine Hours Blending Department Skim mik Cream Sub total Packing Department Whole mil Dream Sub total # *# 330 Direct labor hours Machine hours 260 900 400 620 100 1,200 2,100 950 870 350 2.170 $10 630 190 1.330 3.500 Required 1. Determine the single plantwide factory overhead rate, using each of the following alocation bases: (a) direct labor hours and (b) machine hours. If required, round all amounts to the nearest dollar. Drect leber hour averend rate t Machine hour avera per machine hour 2. Determine the product factory overhead costs, using (e) the direct labor hour plantwide factory overhead rate and (b) the machine hour plantwide factory overhead rate Skim Mik Whole Milk Cream

mmx, and cream-in two production part The three products consume both machine hours and direct labor hours in the two production departments as follows Direct Labor Machine Hours Blending Department Skim mik Cream Sub total Packing Department Whole mil Dream Sub total # *# 330 Direct labor hours Machine hours 260 900 400 620 100 1,200 2,100 950 870 350 2.170 $10 630 190 1.330 3.500 Required 1. Determine the single plantwide factory overhead rate, using each of the following alocation bases: (a) direct labor hours and (b) machine hours. If required, round all amounts to the nearest dollar. Drect leber hour averend rate t Machine hour avera per machine hour 2. Determine the product factory overhead costs, using (e) the direct labor hour plantwide factory overhead rate and (b) the machine hour plantwide factory overhead rate Skim Mik Whole Milk Cream

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 1PB: Single plantwide factory overhead rate Spotted Cow Dairy Company manufactures three productswhole...

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