Financial and Managerial Accounting: PR26-1B Spotted Cow Dairy Company manufactures three

Financial and Managerial Accounting 
PR26-1B Single plantwide factory overhead rate 
Spotted Cow Dairy Company manufactures three products - whole milk, skim mil and cream - in 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: 
Direct labor hours Machine hours 
Blending Department 
Whole Milk 260 650 
Skim Milk 245 710 
Cream 215 260 
720 1,620 
Packing Department 
Whole Milk 470 500 
Skim Milk 300 415 
Cream 130 165 
900 1,080 
Total 1,620 2,700 

Instructions: 
1. Determine the single plantwide factory overhead rate, using each of the following allocation base: (a) direct labor hours and (b) machine hours. 
2. Determine the product factory overhead costs, using (a) the direct labor plantwide factory overhead rate and (b) the machine hour plantwide factory overhead rate.
Powered by