Single Plantwide Factory Overhead Rate California Chrome Company manufactures th
ID: 2497040 • Letter: S
Question
Single Plantwide Factory Overhead Rate
California Chrome Company manufactures three chrome-plated products—automobile bumpers, valve covers, and wheels. These products are manufactured in two production departments (Stamping and Plating). The factory overhead for California Chrome is $285,600.
The three products consume both machine hours and direct labor hours in the two production departments as follows:
Required:
1. Determine the single plantwide 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.
2. Determine the product factory overhead costs, using (a) the direct labor hour plantwide factory overhead rate and (b) the machine hour plantwide factory overhead rate.
Single Plantwide Factory Overhead Rate
California Chrome Company manufactures three chrome-plated products—automobile bumpers, valve covers, and wheels. These products are manufactured in two production departments (Stamping and Plating). The factory overhead for California Chrome is $285,600.
The three products consume both machine hours and direct labor hours in the two production departments as follows:
Direct Labor Hours Machine Hours Stamping Department Automobile bumpers 230 620 Valve covers 250 570 Wheels 190 230 670 1,420 Plating Department Automobile bumpers 330 370 Valve covers 530 460 Wheels 150 150 1,010 980 Total 1,680 2,400Required:
1. Determine the single plantwide 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.
a. Direct labor overhead rate $ per direct labor hour b. Machine hour overhead rate $ per machine hour2. Determine the product factory overhead costs, using (a) the direct labor hour plantwide factory overhead rate and (b) the machine hour plantwide factory overhead rate.
Automobile Bumpers Valve Covers Wheels Direct labor hours $ $ $ Machine hours $ $ $Explanation / Answer
$119
Total Overheads $285,600 Total Direct Labor Hours 1,680.00 Direct Labor overhead rate $170 Total machine Hours 2,400.00 Machine Hour overhead rate$119