Financial and Managerial Accounting: PR26-1A Orange Chrome Company manufactures


Financial and Managerial Accounting

PR26-1A Single plantwide factory overhead rate

Orange Chrome Company manufactures three chrome-plated products  - automobile bumpers, valve covers, and wheels. These products are manufactured in two production departments
(Stamping and Plating). The factory overhead for California Chrome is $220,800.


The three products consume both machine hours and direct labor hours in the two
production departments as follows:



 Direct labor hours 
 Machine hours 


Stamping Department




Automobile bumpers                     560                         800
Valve covers                                   300                         560
Wheels                       340                        600
                  1,200                      1,960


Plating Department




Stamping Department
                       
170
                    
1,170


Automobile bumpers
                       
180
                       
710


Valve covers
                       
175
                       
760


Wheels
                       
525
                    
2,640


Total
                    
1,725
                    
4,600







Instructions:




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