Spotted Cow Dairy Company manufactures three products-whole milk, skim milk, and cream-in two production departments, Blending...

 

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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 $319,800. The three products consume both machine hours and direct labor hours in the two production departments as follows: Blending Department Direct Labor Hours Machine Hours Whole milk 370 1,100 Skim milk 400 1,000 Cream 310 400 Sub total 1,080 2,500 Packing Department Whole milk 460 610 Skim milk 720 750 200 240 1,380 1,600 2,460 4,100 Cream Sub total Total Required: 1. Determine the single plantwide factory overhead rate, using each of the following allocation bases: (a) direct labor hours and (b) machine hours. If required, round all amounts to the nearest dollar. 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 $319,800. The three products consume both machine hours and direct labor hours in the two production departments as follows: Blending Department Direct Labor Hours Machine Hours Whole milk 370 1,100 Skim milk 400 1,000 Cream 310 400 Sub total 1,080 2,500 Packing Department Whole milk 460 610 Skim milk 720 750 200 240 1,380 1,600 2,460 4,100 Cream Sub total Total Required: 1. Determine the single plantwide factory overhead rate, using each of the following allocation bases: (a) direct labor hours and (b) machine hours. If required, round all amounts to the nearest dollar.

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