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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 milk Skim milk Cream Sub total Packing Department Whole milk Skim milk Cream Sub total Direct Labor Total Hours 260 245 215 720 470 300 130 900 1,620 Machine Hours 650 710 260 1,620 500 415 165 1,080 2,790 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:

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 milk Skim milk Cream Sub total Packing Department Whole milk Skim milk Cream Sub total Direct Labor Total Hours 260 245 215 720 470 300 130 900 1,620 Machine Hours 650 710 260 1,620 500 415 165 1,080 2,790 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:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 Packing Department Total 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 Packing Department $178,200 121,500 $299,700 per machine hour per direct labor hour 2. Determine the product factory overhead costs, using the multiple production department rates in (1). Whole Milk Skim Milk Blending Department factory overhead Packing Department factory overhead Total factory overhead Cream
Transcribed Image Text: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 Packing Department Total 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 Packing Department $178,200 121,500 $299,700 per machine hour per direct labor hour 2. Determine the product factory overhead costs, using the multiple production department rates in (1). Whole Milk Skim Milk Blending Department factory overhead Packing Department factory overhead Total factory overhead Cream
^ 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 milk Skim milk Cream Sub total Packing Department Whole milk Skim milk Cream Sub total Direct Labor Hours 260 245 215 720 470 300 130 900 1,620 Machine Hours 650 710 260 1,620 500 415 165 1,080 Total 2,790 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:
Transcribed Image Text:^ 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 milk Skim milk Cream Sub total Packing Department Whole milk Skim milk Cream Sub total Direct Labor Hours 260 245 215 720 470 300 130 900 1,620 Machine Hours 650 710 260 1,620 500 415 165 1,080 Total 2,790 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:
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