W2 Assignment 2PR.04-01BPR.04-02BPR.04-05BHide or show questionsProgress:1/3 itemseBookCalculatorPrint ItemSingle 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 $299,700.The three products consume both machine hours and direct labor hours in the two production departments as follows: Direct Labor HoursMachine HoursBlending DepartmentWhole milk 260 650Skim milk 245 710Cream 215 260 720 1,620Packing DepartmentWhole milk 470 500Skim milk 300 415Cream 130 165 900 1,080Total 1,620 2,700 Required:1. Determine the single plantwide factory overhead rate, using each of the following allocation bases: (a) direct labor hours and (b) machine hours. Direct labor hour overhead rate$ per direct labor hourMachine hour overhead rate$ per machine hour2. 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.Whole MilkSkim MilkCreamDirect labor hours$$$Machine hours$$$
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.
W2 Assignment 2
PR.04-01B
PR.04-02B
PR.04-05B
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Single Plantwide Factory
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 $299,700.
The three products consume both machine hours and direct labor hours in the two production departments as follows:
Direct Labor Hours
Machine Hours
Blending Department
Whole milk
260
650
Skim milk
245
710
Cream
215
260
720
1,620
Packing Department
Whole milk
470
500
Skim milk
300
415
Cream
130
165
900
1,080
Total
1,620
2,700
Required:
1. Determine the single plantwide factory overhead rate, using each of the following allocation bases: (a) direct labor hours and (b) machine hours.
Direct labor hour overhead rate
$ per direct labor hour
Machine hour overhead rate
$ per machine hour
2. Determine the product
Whole Milk
Skim Milk
Cream
Direct labor hours
$
$
$
Machine hours
$
$
$
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