Golving Strstegy M.bple Produttion Depertmant Factory Overhead Ranes Caifornia r

Question

Golving Strstegy M.bple Produttion Depertmant Factory Overhead Ranes Caifornia rone compeny mand actues three chrtme plated prdets atomasie bum ers, waive covers, and whees. These products a e manh t red in two productor desarti ets samoed satie). mrtery oeheader Calfornia Chrome is 5550,400. The three preducts consume both maching hours and drect labor hours in the twa preduction departmerts as folows et Labor H Stamping Degartment Aubomobile bumpers Automoble bumpers The manegement of Calforia Chrome Campany now pians to use the multipie producties patment factory owwhead rate nethod. The botal factory sverhead assocated with each eptm Stamping Department Plating Depetment f required, aund al amounts to the nearest doliar per drect labor Stamping Department Plating Depertment 2. Determine the produst factory ovehend costs, sing the mutiole preduction department rates in (1) Automoble Bumpers Valive Covers eels Stamping Department factory overted Plating Degpertment fectery overhesd Total factory overeed

Explanation / Answer

1. Stamping department: $160 per direct labor hour

$304000/1900 = $160

Plating department: $56 per machine hour

$246400/4400 = $56

2.

Automobile Bumpers Valve Covers Wheels Stamping department factory overhead 142400 91200 70400 Plating department factory overhead 108640 66640 71120 Total factory overhead 251040 157840 141520

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