Spotted Cow Dairy Company manufactures three productswhole milk, skim milk, and creamin two production departments, Blending and

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.

Transcribed Image Text:

Direct Labor Hours Machine Hours Blending Department Whole milk Skim milk Cream 260 245 215 720 650 710 260 1,620 Packing Department Whole mik kim mil Cream 470 300 130 900 1,620 500 415 165 1,080 2,700 Total