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Multiple production department factory overhead rates

Spotted Cow Dairy Company manufactures three productswhole milk, skim milk, and creamin 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:

Line Item Description	Direct Labor Hours	Machine Hours
Blending Department
Whole milk	260	650
Skim milk	245	710
Cream	215	260
Sub total	720	1,620
Packing Department
Whole milk	470	500
Skim milk	300	415
Cream	130	165
Sub total	900	1,080
Total	1,620	2,700

The management of Spotted Cow Dairy Company now plans to use the multiple production department factory overhead rate method. The total factory overhead associated with each department is as follows:

Line Item Description	Amount
Blending Department	$178,200
Packing Department	121,500
Total	$299,700

Required:

1. Determine the multiple production department factory overhead rates, using machine hours for the Blending Department and direct labor hours for the Packing Department. Blending Department fill in the blank 1 of 2$ per machine hour Packing Department fill in the blank 2 of 2$ per direct labor hour

2. Determine the product factory overhead costs, using the multiple production department rates in (1).

Line Item Description	Whole Milk	Skim Milk	Cream
Blending Department factory overhead	fill in the blank 1 of 9$	fill in the blank 2 of 9$	fill in the blank 3 of 9$
Packing Department factory overhead	fill in the blank 4 of 9	fill in the blank 5 of 9	fill in the blank 6 of 9
Total factory overhead	fill in the blank 7 of 9$	fill in the blank 8 of 9$	fill in the blank 9 of 9$

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