Single Plantwide Factory Overhead Rate Gwinnett County Chrome Company manufactures three chrome-plated products-automobile bumpers, valve covers, and wheels. These products are manufactured in two production departments (s 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 Required: 1. Determine the single plantwide factory overhead rate, using each of the following allocation bases: (a) direct labor hours and (b) machine hours. 130 per direct labor hour Direct labor hour overhead rate 52 per machine hour Machine hour overhead rate 2. Determine the product factory overhead costs, using (a) the direct labor hour plantwide factory overhead rate and (b) the machine hour plantwide factory overhead rate. Automobile Bumpers Valve Covers Wheels Direct labor hours $ 102,050 $ 66,300

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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(9) ABC:

Single Plantwide Factory Overhead Rate
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 $239,200.
The three products consume both machine hours and direct labor hours in the two production departments as follows:
Direct Labor
Machine
Hours
Hours
Stamping Department
Automobile bumpers
590
810
Valve covers
310
570
Wheels
350
620
1,250
2,000
Plating Department
Automobile bumpers
195
1,150
Valve covers
200
700
Wheels
195
750
590
2,600
Total
1,840
4,600
Required:
1. Determine the single plantwide factory overhead rate, using each of the following allocation bases: (a) direct labor hours and (b) machine hours.
Direct labor hour overhead rate
130
per direct labor hour
Machine hour overhead rate
2$
52
per machine hour
2. Determine the product factory overhead costs, using (a) the direct labor hour plantwide factory overhead rate and (b) the machine hour plantwide factory overhead rate.
Automobile Bumpers
Valve Covers
Wheels
Direct labor hours
$ 102,050
$
66,300
Machine hours
$ 101,920
66,040
Transcribed Image Text:Single Plantwide Factory Overhead Rate 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 $239,200. The three products consume both machine hours and direct labor hours in the two production departments as follows: Direct Labor Machine Hours Hours Stamping Department Automobile bumpers 590 810 Valve covers 310 570 Wheels 350 620 1,250 2,000 Plating Department Automobile bumpers 195 1,150 Valve covers 200 700 Wheels 195 750 590 2,600 Total 1,840 4,600 Required: 1. Determine the single plantwide factory overhead rate, using each of the following allocation bases: (a) direct labor hours and (b) machine hours. Direct labor hour overhead rate 130 per direct labor hour Machine hour overhead rate 2$ 52 per machine hour 2. Determine the product factory overhead costs, using (a) the direct labor hour plantwide factory overhead rate and (b) the machine hour plantwide factory overhead rate. Automobile Bumpers Valve Covers Wheels Direct labor hours $ 102,050 $ 66,300 Machine hours $ 101,920 66,040
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