VAULT CenpageLogin Georgia Oli irHomaesity ofstudentMal Zachary Gooden .p Pages

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VAULT CenpageLogin Georgia Oli irHomaesity ofstudentMal Zachary Gooden .p Pages Curent Studkents)tc Homepage University of. enMail- Zachary Gooden (Z. 3p Pages Current Students (290 unread) zackgattac. eBook Print Item 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 $395,500. 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 Skim milk Cream 750 480 370 1,600 1,030 830 640 2,500 Packing Department Whole milk Skim milk Cream 220 230 220 670 2,270 1,540 950 1,010 3,500 6,000 The management of Spotted Cow Dairy Company now plans to use the multiple production department factory overhead rate method. The total Total factory overhead associated with each department is as follows: Blending Department $224,000 1252 F

Explanation / Answer

Ans 1 Department factory overhed rate Blending Dept 224000/1600 DLH 140.00 per direct labor hour Packing Dept 171500/3500 MH 49.00 per machine hr ans 2 Whole Milk Skim Milk Cream Blending Dept-Factory overhead 105000 67200 51800 750*140 480*140 370*140 Packing Dept-Fact overhead 75460 46550 49490 1540*49 950*49 1010*49 Total 180460 113750 101290 If any doubt please comment. If satisfied you can rate the answer

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