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Assignment
Orange County 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 Orange County Chrome is $206,972.
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
557
801
Valve covers
296
558
Wheels
339
599
1,192
1,958
Plating Department
167
1,171
180
715
172
758
519
2,644
Total
1,711
4,602
The management of Orange County Chrome Company now plans to use the multiple production department factory overhead rate method. The total factory overhead associated with each department is as follows:
1
$114,432.00
2
92,540.00
3
$206,972.00
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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