Single plantwide factory overhead rate Spoiled 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 Instructions 1. Determine the .single plantwide factory overhead rate, using each of the following allocation bases: (A) direct labor hours and (B) machine hours. 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.

BuyFind

Financial & Managerial Accounting

14th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781337119207
BuyFind

Financial & Managerial Accounting

14th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781337119207

Solutions

Chapter
Section
Chapter 18, Problem 18.1BPR
Textbook Problem

Single plantwide factory overhead rate

Spoiled 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

Instructions

1. Determine the .single plantwide factory overhead rate, using each of the following allocation bases: (A) direct labor hours and (B) machine hours.

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.

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Chapter 18 Solutions

Financial & Managerial Accounting
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