Single Plantwide Factory Overhead Rate Spotted Cow Dairy Company manufactures three productswhole milk, skim milk,...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Single Plantwide Factory Overhead Rate
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 $352,800.
The three products consume both machine hours and direct labor hours in the two production departments as follows:
Direct Labor Hours
Machine Hours
Blending Department
Whole milk
250
630
Skim milk
270
580
Cream
220
230
740
1,440
Packing Department
Whole milk
310
360
Skim milk
490
450
Cream
140
150
940
960
Total
1,680
2,400
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.
a. Direct labor overhead rate
$ per direct labor hour
b. Machine hour overhead rate
$ per machine hour
2. Determine the product factory overhead costs, using (a) the direct labor hour plantwide factory overhead rate and (b) the machine hour plantwide factory overhead rate.
Whole Milk
Skim Milk
Cream
Direct labor hours
$
$
$
Machine hours
$
$
$
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
