Multiple Production Department Factory Overhead Rates Spotted Cow Dairy Company manufactures three products-whole milk, skim milk, and cream-in two production departments, Sending 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 Packing Department Total Direct Labor Hours Machine Hours 500 415 165 1,000 2,700 The management of Spotted Cow Dairy Company now plans to use the mutigle production department factory overhead rate method. The total factory overhead associated with each department is as follows: Required: 260 245 215 720 470 300 130 900 1,620 650 710 260 1,620 $178.200 121,500 $299,700

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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
110
per machine hour
Packing Department
135
X per direct labor hour
2. Determine the product factory overhead costs, using the multiple production department rates in (1).
Whole Milk
Blending Department factory
overhead
121,500
$299,700
Packing Department factory
overhead
Total factory overhead
71,500✔
X
106,750 X
Skim Milk
78,100 ✔
X
100,600 X
Cream
28,600✔
X
38,350 X
Transcribed Image Text: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 110 per machine hour Packing Department 135 X per direct labor hour 2. Determine the product factory overhead costs, using the multiple production department rates in (1). Whole Milk Blending Department factory overhead 121,500 $299,700 Packing Department factory overhead Total factory overhead 71,500✔ X 106,750 X Skim Milk 78,100 ✔ X 100,600 X Cream 28,600✔ X 38,350 X
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
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 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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