Classic Car Accessory 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 Classic Car is $423,000.

The three products consume both machine hours and direct labor hours in the two production departments as follows:

Instructions
1. Determine the single plant-wide 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 plant-wide factory overhead rate and (b) the machine hour plant-wide factory overheadrate.

Transcribed Image Text:

Direct Labor Hours Machine Hours Stamping Department Automobile bumpers Valve covers Wheels 420 380 700 1,500 720 680 940 2,340 Plating Department Automobile bumpers Valve covers Wheels 205 210 200 615 2,115 950 890 1,460 3,300 5,640 Total