Question

In: Accounting

Single plant wide factory rate: Spotted Cow Dairy Company manufactures three products-whole milk, skin milk, and...

Single plant wide factory rate: Spotted Cow Dairy Company manufactures three products-whole milk, skin milk, and cream- in two production departments, blending and packaging. The factory overhead for Spotted Dairy is $356,400.

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

Blending department. Direct labor hr. Machine hr.

Whole milk. 300 880

skin milk. 320. 800

cream. 250. 330

870. 2,010

Packing Department

Whole Milk. 370. 490

skin milk. 580. 610

cream. 160 190

Total. 1,110. 1,290

1,980. 3300

Required: 1). Determine the single plant wide factory overhead rate, using each of the following allocated bases: (a) direct labor hours and (b) machine hours. If required, round all amounts to the nearest dollar.

a. Direct labor overhead rate. $ Per direct labor hour

B. Machine hours. $. Per machine hour

2). Determine the product factory overhead cost,using (a) the direct labor hour plantwide factory overhead rate and (b) the machine hour plantwide factor overhead rate.

Whole Milk. Skin Milk Cream

Direct labor hours. $. $. $

Machine Hours. $. $. $

Solutions

Expert Solution

(1) Single plant wide factory overhead rate :-

(a) Using Direct Labour Hrs :-

Total O/H = $356400

Total Labour Hrs = 1980 hrs

O/H Rate = 356400/1980 Hrs = $180

(b) Using Machine Hrs :-

Total machine hrs = 3300 hrs

O/H Rate = 356400/3300 Hrs = $108

(2) Product factory overhead cost:-

(a) Using Direct Labour Hrs :-

	Whole Milk	Skin Milk	Cream
Direct Labour Hrs (A)	670	900	410
O/H Rate (B)	180	180	180
*Total O/H (A B)**	120600	162000	73800

(b) Using Machine Hrs :-

	Whole Milk	Skin Milk	Cream
Machine Hrs (A)	1370	1410	520
O/H Rate (B)	108	108	108
*Total O/H (A B)**	147960	152280	56160

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Single Plantwide Factory Overhead Rate Spotted Cow Dairy Company manufactures three products—whole milk, skim milk, and...

Single Plantwide Factory Overhead Rate 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 $362,600. The three products consume both machine hours and direct labor hours in the two production departments as follows: Direct Labor HoursMachine Hours Blending Department Whole milk390 930 Skim milk420 840 Cream330 340 1,140 2,110 Packing Department Whole milk480 600 Skim milk750 750 Cream220 240 1,450 1,590 Total2,590 3,700...

Multiple Production Department Factory Overhead Rates Spotted Cow Dairy Company manufactures three products—whole milk, skim milk,...

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 $335,400. 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 660 890 Skim milk 420 720 Cream 320 570 1,400 2,180 Packing Department Whole milk 190 1,360 Skim milk 210...

Spotted Cow Dairy Company manufactures three products—whole milk, skim milk, and cream—in two production departments, Blending...

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 $226,200. 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 250 740 Skim milk 270 670 Cream 210 270 730 1,680 Packing Department Whole milk 330 460 Skim milk 530 570 Cream 150 190 1,010 1,220...

Royal Company manufactures two products, Tables and Seats. Both products are manufactured in a single factory....

Royal Company manufactures two products, Tables and Seats. Both products are manufactured in a single factory. There is $1,600,000 of factory overhead budgeted for the period. Royal Company plans to manufacture 1,000 units of each product. Assume tables and seats both require 10 direct labor hours per unit to manufacture. Required: 1. Determine the total cost for a table and for the seat. 2. Based on that determine the selling price for the table and for the seat, when company...

Jordan Company currently is using a plant-wide factory overhead rate based on machine hours. The budgeted...

Jordan Company currently is using a plant-wide factory overhead rate based on machine hours. The budgeted factory overhead costs is $405,000. Company has two departments, X and Y. Company is considering use of departmental overhead rates for the allocation of each departments’ overhead costs to jobs. Overhead would be applied based on direct labor cost in Department X and machine-hours in Department Y. The following additional information is available: Budgeted Amounts Department X Department Y Direct labor cost $180,000 $165,000...

#2 Single Plantwide Factory Overhead Rate Salty Sensations Snacks Company manufactures three types of snack foods:...

#2 Single Plantwide Factory Overhead Rate Salty Sensations Snacks Company manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has budgeted the following costs for the upcoming period: Factory depreciation $11,233 Indirect labor 27,839 Factory electricity 3,175 Indirect materials 6,593 Selling expenses 15,629 Administrative expenses 8,791 Total costs $73,260 Factory overhead is allocated to the three products on the basis of processing hours. The products had the following production budget and processing hours per case:...

Single Plantwide Factory Overhead Rate Salty Sensations Snacks Company manufactures three types of snack foods: tortilla...

Single Plantwide Factory Overhead Rate Salty Sensations Snacks Company manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has budgeted the following costs for the upcoming period: Factory depreciation $20,079 Indirect labor 49,761 Factory electricity 5,675 Indirect materials 11,785 Selling expenses 27,936 Administrative expenses 15,714 Total costs $130,950 Factory overhead is allocated to the three products on the basis of processing hours. The products had the following production budget and processing hours per case: Budgeted...

Single Plantwide Factory Overhead Rate Salty Sensations Snacks Company manufactures three types of snack foods: tortilla...

Single Plantwide Factory Overhead Rate Salty Sensations Snacks Company manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has budgeted the following costs for the upcoming period: Factory depreciation $24,331 Indirect labor 60,298 Factory electricity 6,876 Indirect materials 14,281 Selling expenses 33,852 Administrative expenses 19,041 Total costs $158,679 Factory overhead is allocated to the three products on the basis of processing hours. The products had the following production budget and processing hours per case: Budgeted...

Oberweis is a dairy company based out of Chicago. Oberweis produces milk at a fixed rate...

Oberweis is a dairy company based out of Chicago. Oberweis produces milk at a fixed rate of 6,000 gallons/hour. Oberweis serves clients who, in total, request 100,000 gallons of milk per day. Clients send trucks to pick up their orders, and trucks arrive uniformly from 8am to 6pm. If Oberweis runs out of milk, trucks will wait until enough is produced to satisfy their client’s requests. Per Oberweis policy, the company begins and ends each day with 24,000 gallons in...

Wisconsin Milk and Ice Cream Manufacturing operates a single plant in Sun Prairie, Wisconsin. It manufactures...

Wisconsin Milk and Ice Cream Manufacturing operates a single plant in Sun Prairie, Wisconsin. It manufactures milk and ice cream for retail and private label marketers in the Midwest. Joint costs Joint costs of processing raw milk Cream Liquid Skim Joint costs $ 1,000,000 [from 300,000 gallons of milk] Separable costs buttercream $ 600,000 Separable costs milk $ 500,000 Raw Milk is processed further to make Cream and Liquid Skim Cream is processed further to make Buttercream Liquid Skim is...

Subjects