Multiple Production Department Factory Overhead Rates Spotted Cow Dairy Company manufactures three products-whole milk, skim milk, and cream-in two production departments, Sending 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 Blending Department Whole mik Skim mik Cream Packing Department Whole mik Skim mik Cream Total Packing Department Total Direct Labor Hours Machine Hours 500 415 165 1,000 2,700 The management of Spotted Cow Dairy Company now plans to use the mutigle production department factory overhead rate method. The total factory overhead associated with each department is as follows: Required: 260 245 215 720 470 300 130 900 1,620 650 710 260 1,620 $178.200 121,500 $299,700
Multiple Production Department Factory Overhead Rates Spotted Cow Dairy Company manufactures three products-whole milk, skim milk, and cream-in two production departments, Sending 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 Blending Department Whole mik Skim mik Cream Packing Department Whole mik Skim mik Cream Total Packing Department Total Direct Labor Hours Machine Hours 500 415 165 1,000 2,700 The management of Spotted Cow Dairy Company now plans to use the mutigle production department factory overhead rate method. The total factory overhead associated with each department is as follows: Required: 260 245 215 720 470 300 130 900 1,620 650 710 260 1,620 $178.200 121,500 $299,700
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 1PB: Single plantwide factory overhead rate Spotted Cow Dairy Company manufactures three productswhole...
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