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

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Accounting

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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 $284,400. consume both machine hours and direct labor hours in the two production departments as follows: Blending Department Skim millk 360 280 1,200 620 480 1,870 Whole milk 170 180 155 1,140 700 760 2,600 4,470 Skim milk Cream Total 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 1,705 $144,000

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