eBookE Print ItemMultiple Production Department Factory Overhead RatesSpotted Cow Dairy Company manufactures three products-whole milk, skim milk, and cream-in two production departments, Blending and Packing. The factoryoverhead for Spotted Cow Dairy is $299,700.The three products consume both machine hours and direct labor hours in the two producțion departments as follows:Direct LaborMachineHoursHoursBlending DepartmentWhole milk260650Skim milk245710Cream2152607201,620Packing DepartmentWhole milk470500Skim milk300415Cream1301659001,080Total1,6202,700The management of Spotted Cow Dairy Company now plans to use the multiple production department factory overhead rate method. The total factory overheadassociated with each department is as follows:Blending Department$178,200Packing Department121,500Total$299,700 eBookPrint ItemTotal1,6202,700The management of Spotted Cow Dairy Company now plans to use the multiple production department factory overhead rate method. The total factory overheadassociated with each department is as follows:Blending Department$178,200Packing Department121,500Total$299,700Required:1. Determine the multiple production department factory overhead rates, using machine hours for the Blending Department and direct labor hours for the PackingDepartment.Blending Department185 X per machine hourPacking Department111X per direct labor hour2. Determine the product factory overhead costs, using the multiple production department rates in (1).Whole MilkSkim MilkCreamBlending Department factory overheadPacking Department factory overheadTotal factory overheadFeedbackCheck My Work1. Calculate for each department:Total department overhead + total activity base = Department rate

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Description: eBookE Print ItemMultiple Production Department Factory Overhead RatesSpotted Cow Dairy Company manufactures three products-whole milk, skim milk, and cream-in two production departments, Blending and Packing. The factoryoverhead for Spotted Cow Dai

The predetermined overhead rate is calculated as total estimated cost divided by the activity base.

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Iction Department Factory Overnead Rates 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 Machine Hours 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 The management of Spotted Cow Dairy Company now plans to use the multiple production department factory overhead rate method. The total factory overhead associated with each department is as follows: Blending Department $178,200 Packing Department 121,500 Total $299,700

Iction Department Factory Overnead Rates 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 Machine Hours 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 The management of Spotted Cow Dairy Company now plans to use the multiple production department factory overhead rate method. The total factory overhead associated with each department is as follows: Blending Department $178,200 Packing Department 121,500 Total $299,700

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Multiple Production Department Factory Overhead Rates 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: Blending Department Whole mik Skim mik Cream Packing Department Whole mik Skim mik Cream Total Blending Department Packing Department Total Direct Labor Hours Machine Hours Required: 260 245 215 720 500 415 165 1,000 2,700 The management of Spotted Cow Dairy Company now plans to use the multiple production department factory overhead rate method. The total factory overhead associated with each department is as follows: 470 300 130 900 1,620 650 710 260 $176,200 121,500 $299,700 1,620
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