Orange 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 Orange County Chrome is $219,520. The three products consume both machine hours and direct labor hours in the two production departments as follows: Direct Labor Hours Machine Hours Stamping Department Automobile bumpers 560 798 Valve covers 301 557 Wheels 339 559 1,200 1,954 Plating Department Automobile bumpers 170 1,168 Valve covers 185 708 Wheels 173 762 528 2,638 Total 1,728 4,592 1 Stamping Department $114,000.00 2 Plating Department 3❘ Total Required: $105,520.00 $219,520.00 Determine the multiple production department factory overhead rates, using direct labor hours for the Stamping Department and machine hours for the Plating Department.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 1PA: Gwinnett County Chrome Company manufactures three chrome-plated productsautomobile bumpers, valve...
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Orange 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 Orange County Chrome is
$219,520.
The three products consume both machine hours and direct labor hours in the two production
departments as follows:
Direct Labor Hours Machine Hours
Stamping Department
Automobile bumpers
560
798
Valve covers
301
557
Wheels
339
559
1,200
1,954
Plating Department
Automobile bumpers
170
1,168
Valve covers
185
708
Wheels
173
762
528
2,638
Total
1,728
4,592
1 Stamping Department $114,000.00
2 Plating Department
3❘ Total
Required:
$105,520.00
$219,520.00
Determine the multiple production department factory overhead rates, using direct labor hours
for the Stamping Department and machine hours for the Plating Department.
Transcribed Image Text:Orange 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 Orange County Chrome is $219,520. The three products consume both machine hours and direct labor hours in the two production departments as follows: Direct Labor Hours Machine Hours Stamping Department Automobile bumpers 560 798 Valve covers 301 557 Wheels 339 559 1,200 1,954 Plating Department Automobile bumpers 170 1,168 Valve covers 185 708 Wheels 173 762 528 2,638 Total 1,728 4,592 1 Stamping Department $114,000.00 2 Plating Department 3❘ Total Required: $105,520.00 $219,520.00 Determine the multiple production department factory overhead rates, using direct labor hours for the Stamping Department and machine hours for the Plating Department.
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