Multiple Production Department Factory Overhead Rates Gwinnett County Chrome Company manufactures three chrome-plated products-automobile bumpers,valve covers, and wheels. These products are manufactured in two production departments (Stamping and Plating). The factory overhead for Gwinnett County Chrome is $239,200. The three products consume both machine hours and direct labor hours in the two production departments as follows: Direct Labor Machine Hours Hours Stamping Department Automobile bumpers 590 810 Valve covers 310 570 Wheels 350 620 1,250 2,000 Plating Department Automobile bumpers 195 1,150 Valve covers 200 700 Wheels 195 750 590 2,600 Total 1,840 4,600 The management of Gwinnett County Chrome Company now plans to use the multiple production department factory overhead rate method. The total factory overhead associated with each department is as follows: Stamping Department $120,000 Plating Department 104,000 Previous

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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Valve covers
200
700
Wheels
195
750
590
2,600
Total
1,840
4,600
The management of Gwinnett County Chrome Company now plans to use the multiple production department factory overhead rate method. The total factory overhead
associated with each department is as follows:
Stamping Department
$120,000
Plating Department
104,000
Total
$224,000
Required:
1. Determine the multiple production department factory overhead rates, using direct labor hours for the Stamping Department and machine hours for the Plating
Department.
Stamping Department
per direct labor hour
Plating Department
per machine hour
2. Determine the product factory overhead costs, using the multiple production department rates in (1).
Automobile bumpers
Valve covers
Wheels
Stamping Department
Plating Department
Total factory overhead
Previous
Transcribed Image Text:Valve covers 200 700 Wheels 195 750 590 2,600 Total 1,840 4,600 The management of Gwinnett County Chrome Company now plans to use the multiple production department factory overhead rate method. The total factory overhead associated with each department is as follows: Stamping Department $120,000 Plating Department 104,000 Total $224,000 Required: 1. Determine the multiple production department factory overhead rates, using direct labor hours for the Stamping Department and machine hours for the Plating Department. Stamping Department per direct labor hour Plating Department per machine hour 2. Determine the product factory overhead costs, using the multiple production department rates in (1). Automobile bumpers Valve covers Wheels Stamping Department Plating Department Total factory overhead Previous
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Multiple Production Department Factory Overhead Rates
Gwinnett County Chrome Company manufactures three chrome-plated products-automobile bumpers,valve covers, and wheels. These products are manufactured in two
production departments (Stamping and Plating). The factory overhead for Gwinnett County Chrome is $239,200.
The three products consume both machine hours and direct labor hours in the two production departments as follows:
Direct Labor
Machine
Hours
Hours
Stamping Department
Automobile bumpers
590
810
Valve covers
310
570
Wheels
350
620
1,250
2,000
Plating Department
Automobile bumpers
195
1,150
Valve covers
200
700
Wheels
195
750
590
2,600
Total
1,840
4,600
The management of Gwinnett County Chrome Company now plans to use the multiple production department factory overhead rate method. The total factory overhead
associated with each department is as follows:
Stamping Department
$120,000
Plating Department
104,000
Previous
Transcribed Image Text:YouTube Maps Multiple Production Department Factory Overhead Rates Gwinnett County Chrome Company manufactures three chrome-plated products-automobile bumpers,valve covers, and wheels. These products are manufactured in two production departments (Stamping and Plating). The factory overhead for Gwinnett County Chrome is $239,200. The three products consume both machine hours and direct labor hours in the two production departments as follows: Direct Labor Machine Hours Hours Stamping Department Automobile bumpers 590 810 Valve covers 310 570 Wheels 350 620 1,250 2,000 Plating Department Automobile bumpers 195 1,150 Valve covers 200 700 Wheels 195 750 590 2,600 Total 1,840 4,600 The management of Gwinnett County Chrome Company now plans to use the multiple production department factory overhead rate method. The total factory overhead associated with each department is as follows: Stamping Department $120,000 Plating Department 104,000 Previous
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