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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 department as follows:

Blending Department Direct Labor Hours Machine Hours

Whole Milk 270 790

Skim Milk 290 720

Cream 240 290

800 (total) 1,800 (total)

Packing Department

Whole Milk 330 460

Skim Milk 520 560

Cream 150 180

1,100 (total) 1,200 (total)

Instructions:

1. Determine the single plantwide factory overhead rate, using each of the following allocation bases: a)direct labor and b)machine hours.

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.

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 department as follows: Blending Department Direct Labor Hours Machine Hou Instructions: Determine the single plantwide factory overhead rate, using each of the following allocation bases: a)direct labor and b)machine hours. 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

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