Spring Meadow Dairy Company manufactures three products'whole milk, skim milk, and cream'in two production departments, Blending and Packing. The factory overhead for Spring Meadow Dairy is $270,000. 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 Blending Department Whole milk Skim milk Cream 270 290 240 800 790 720 290 1,800 Packing Department Whole milk Skim milk Cream 330 520 150 1,000 1,800 460 560 180 1,200 3,000 Total