Multiple Production Department Factory Overhead Rates Spotted Cow Dairy Company manufactures three products—whole milk, skim milk, and cream—in two production departments, Blending and Packing

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Multiple Production Department Factory Overhead Rates

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 $403,800.

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			800			1,090
Skim milk			510			870
Cream			390			690
			1,700			2,650
Packing Department
Whole milk			240			1,630
Skim milk			250			1,000
Cream			225			1,070
			715			3,700
	Total		2,415			6,350

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:

Blending Department	$204,000
Packing Department	199,800
Total	$403,800

 

Required:

If required, round all amounts to the nearest dollar.

1.  Determine the multiple production department factory overhead rates, using direct labor hours for the Blending Department and machine hours for the Packing Department.

Blending Department	$fill in the blank 1 per direct labor hour
Packing Department	$fill in the blank 2 per machine hour

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

	Whole milk		Skim milk		Cream
Blending Department factory overhead	$fill in the blank 3		$fill in the blank 4		$fill in the blank 5
Packing Department factory overhead	fill in the blank 6		fill in the blank 7		fill in the blank 8
Total factory overhead	$fill in the blank 9		$fill in the blank 10		$fill in the blank 11