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Problem - Multiple production department factor overhead rates
The management of California Chrome Company, described in Problem 26-1A now plans to use the multiple production department factory overhead rate method. The total factory overhead associated with each department is as follows:
Stamping Department $180,000
Plating Department 158,400
Total $338,400
Instructions -
1. Determine the multiple production department factory overhead rates, using direct labor hours for the Stamping Department and machine hours for the Plating Department.
2. Determine the product factory overhead costs, using the multiple production department rates in (1).
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