Question

Spotted Cow Dairy Company manufactures three products—whole milk, skim milk, and cream—in two production departments, Blending and Packing. The factory overhead for Spotted Cow Dairy is $ 299,700.
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.


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  • CreatedJune 27, 2014
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