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

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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 producțion 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
Transcribed Image Text:eBook E Print Item 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 producțion 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
eBook
Print Item
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
Required:
1. Determine the multiple production department factory overhead rates, using machine hours for the Blending Department and direct labor hours for the Packing
Department.
Blending Department
185 X per machine hour
Packing Department
111
X per direct labor hour
2. Determine the product factory overhead costs, using the multiple production department rates in (1).
Whole Milk
Skim Milk
Cream
Blending Department factory overhead
Packing Department factory overhead
Total factory overhead
Feedback
Check My Work
1. Calculate for each department:
Total department overhead + total activity base = Department rate
Transcribed Image Text:eBook Print Item 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 Required: 1. Determine the multiple production department factory overhead rates, using machine hours for the Blending Department and direct labor hours for the Packing Department. Blending Department 185 X per machine hour Packing Department 111 X per direct labor hour 2. Determine the product factory overhead costs, using the multiple production department rates in (1). Whole Milk Skim Milk Cream Blending Department factory overhead Packing Department factory overhead Total factory overhead Feedback Check My Work 1. Calculate for each department: Total department overhead + total activity base = Department rate
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