Direct Labor Hours Machine Hours Stamping Department Automobile bumpers 590 310 810 Valve covers 570 Wheels 350 1,250 620 2,000 Plating Department Automobile bumpers 195 1,150 Valve covers 200 700 Wheels 750 2,600 4,600 195 590 Total 1,840

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

Instructions

1. Determine the single plantwide factory overhead rate, using each of the following allocation bases: (a) direct labor hours and (b) machine hours.

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.

Direct Labor Hours
Machine Hours
Stamping Department
Automobile bumpers
590
310
810
Valve covers
570
Wheels
350
1,250
620
2,000
Plating Department
Automobile bumpers
195
1,150
Valve covers
200
700
Wheels
750
2,600
4,600
195
590
Total
1,840
Transcribed Image Text:Direct Labor Hours Machine Hours Stamping Department Automobile bumpers 590 310 810 Valve covers 570 Wheels 350 1,250 620 2,000 Plating Department Automobile bumpers 195 1,150 Valve covers 200 700 Wheels 750 2,600 4,600 195 590 Total 1,840
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