Chapter 18, Problem 2PB

Multiple production department factory overhead rates

The management of Spotted Cow Dairy Company, described in Problem 1B, now plans to use the multiple production department factory overhead rate method. The total factory overhead associated with each department is as follows:

Instructions

Determine the multiple production department factory overhead rates, using machine hours for the Blending Department and direct labor hours for the Packing Department.

Determine the product factory overhead costs, using the multiple production department rates in (1).