Orange County Chrome Company manufactures three chrome-plated productsautomobile bumpers, valve covers, and wheels. These products are manufactured

Orange 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 Orange County Chrome is $ 220,800. 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
(b) Machine hours.
2. Determine the product factory overhead costs, using
(a) The direct labor hour plantwide factory overhead rate
(b) The machine hour plantwide factory overheadrate.

Transcribed Image Text:

Direct Labor Hours Machine Hours Stamping Department Automobile bumpers Valve covers 1,200 1,960 2 Plating Department Automobile bumpers Valve covers 1,170 710 170 180 175 525 1,725 2,640 4,600 Total