Chapter 18, Problem 2PA

The management of Gwinnett County Chrome Company, described in Problem 1A, now plans to use the multiple production department factory overhead rate method. The total factory overhead associated with each department is as follows:

Instructions

1. 1. Determine the multiple production department factory overhead rates, using direct labor hours for the Stamping Department and machine hours for the Plating Department.
2. 2. Determine the product factory overhead costs, using the multiple production department rates in (1).