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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Multiple production department factory overhead rates The management of Spotted Cow Dairy Company, described in Problem 1B, now plans to use the multiple production department factory overhead rate method. The total factory overhead associated with each department is as follows: Instructions Determine the multiple production department factory overhead rates, using machine hours for the Blending Department and direct labor hours for the Packing Department. Determine the product factory overhead costs, using the multiple production department rates in (1).
Activity-based product costing Sweet Sugar Company manufactures three products (white sugar, brown sugar, and powdered sugar) in a continuous production process. Senior management has asked the controller to conduct an activity-based costing study. The controller identified the amount of factory overhead required by the critical activities of the organization as follows: The activity bases identified for each activity are as follows: The activity-base usage quantities and units produced for the three products were determined from corporate records and are as follows: Each product requires 0.5 machine hour per unit. Instructions Determine the activity rate for each activity. Determine the total and per-unit activity cost for all three products. Round to nearest cent. Why arent the activity unit costs equal across all three products since they require the same machine time per unit?
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 $274,900. 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 210 840 Cream 190 900 590 3,100 Total 1,990 5,280 The management of Spotted Cow Dairy Company now plans to use the multiple production department factory overhead rate method. The total factory overhead associated with each department is as follows: Blending Department $154,000 Packing Department 120,900 Total $274,900 Required: If…
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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 $403,200. The three products consume both machine hours and direct labor hours in the two production departments as follows: Direct Labor Blending Department Whole milk Skim milk Cream Subtotal Packing Department Whole milk Skim mik Cream Sub total Total Direct labor hour overhead rate Machine hour everhead rate s Hours 360 390 Direct labor hours Machine hours 310 1,060 400 760 220 1,460 7,570 Machine Hours 970 100 350 2,200 Required: 1. Determine the single plantwide factory overhead rate, using each of the following location bases: (a) direct labor hours and (b) machine hours. If required, round all amounts to the nearest dollar. 600 210 1,400 3,600 per direct labor hour per machine hour 2. Determine the product factory overhead costs, wing (a) the direct labior…
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 $441,000. The three products consume both machine hours and direct labor hours in the two production departments as follows Direct Labor Hours Blending Department Whole milk Skimmi Cream Sub tatal Packing Department Whole milk Skim mik Cream Sub total Total Direct labor hour overhead rate s Machine hour overhead rate 310 330 260 900 400 620 100 1,200 2,100 Direct labor hours Machine hours Machine Hours per machine hour 950 870 350 2,170 Required: 1. Determine the single slentwise factory overhead rate, using each of the following allocation bases: (a) direct labor hours and (b) machine hours. If required, round all amounts to the nearest dollar. per direct labor hour $10 630 190 1,330 3,500 2. Determine the product factory overhead costs, using (e) the direct labor…
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Multiple production department factory overhead rate methodFour Finger Appliance Company manufactures small kitchen appliances.The product line consists of blenders and toaster ovens. Four FingerAppliance presently uses the multiple production department factoryoverhead rate method. The factory overhead is as follows: Assembly Department $186,000 Test and Pack Department 120,000 Total $306,000 The direct labor information for the production of 7,500 units of each product is as follows: AssemblyDepartment Test and PackDepartment Blender 750 dih 2,250 dlh Toaster oven 2,250 750 Total 3,000 dih 3,000 dlh Four Finger Appliance used direct labor hours to allocate productiondepartment factory overhead to products.Determine the two production department factory overhead rates.Determine the total factory overhead and the factory overhead per unitallocated to each product.
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Single Plantwide Factory Overhead Rate Scrumptious Snacks Inc. 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 Indirect labor Factory electricity Indirect materials Selling expenses Administrative expenses Total costs 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: Tortilla chips Potato chips Pretzels Total 3,300 2,100 1,800 7,200 If required, round all per-case answers to the nearest cent. Budgeted Volume (Cases) Tortilla chips Potato chips Pretzels $11,066 27,425 3,127 6,496 15,396 8,661 $72,171 a. Determine the single plantwide factory overhead rate. $ Total per processing hour b. Use the overhead rate in (a) to determine the amount of total and per-case overhead allocated to each of the three products under generally accepted accounting…
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