Determine the product factory overhead costs

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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



Automobile bumpers

167

1,171

Valve covers

180

715

Wheels

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

Stamping Department

$114,432.00

2

Plating Department

92,540.00

3

Total

$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).

Reference no: EM131819364

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