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.