Orange County Chrome Company manufactures three chrome-platedproductsâautomobile bumpers, valve covers, and wheels. Theseproducts are manufactured in two production departments (Stampingand Plating). The factory overhead for Orange County Chrome is$223,000.
The three products consume both machine hours and direct laborhours in the two production departments as follows:
Direct LaborHours MachineHours Stamping Department Automobile bumpers 563 799 Valve covers 305 564 Wheels 341 601 1,209 1,964 Plating Department Automobile bumpers 172 1,169 Valve covers 178 713 Wheels 177 765 527 2,647 Total 1,736 4,611
Required: 1. Determine the single plantwidefactory overhead rate, using each of the following allocationbases: (a) direct labor hours and (b) machine hours. 2. Determine the product factoryoverhead costs, using (a) the direct labor hour plantwide factoryoverhead rate and (b) the machine hour plantwide factory overheadrate. Refer to the Amount Descriptions list provided for the exactwording of the answer choices for text entries.
Orange County Chrome Company manufactures three chrome-platedproductsâautomobile bumpers, valve covers, and wheels. Theseproducts are manufactured in two production departments (Stampingand Plating). The factory overhead for Orange County Chrome is$223,000.
The three products consume both machine hours and direct laborhours in the two production departments as follows:
| Direct LaborHours | MachineHours | |
| Stamping Department | ||
| Automobile bumpers | 563 | 799 |
| Valve covers | 305 | 564 |
| Wheels | 341 | 601 |
| 1,209 | 1,964 | |
| Plating Department | ||
| Automobile bumpers | 172 | 1,169 |
| Valve covers | 178 | 713 |
| Wheels | 177 | 765 |
| 527 | 2,647 | |
| Total | 1,736 | 4,611 |
| Required: | |
| 1. | Determine the single plantwidefactory overhead rate, using each of the following allocationbases: (a) direct labor hours and (b) machine hours. |
| 2. | Determine the product factoryoverhead costs, using (a) the direct labor hour plantwide factoryoverhead rate and (b) the machine hour plantwide factory overheadrate. Refer to the Amount Descriptions list provided for the exactwording of the answer choices for text entries. |
Related questions
Orange County Chrome Company manufactures three chrome-platedproductsâautomobile bumpers, valve covers, and wheels. Theseproducts are manufactured in two production departments (Stampingand Plating). The factory overhead for Orange County Chrome is$224,698.
The three products consume both machine hours and direct laborhours in the two production departments as follows:
| Direct LaborHours | MachineHours | |
| Stamping Department | ||
| Automobile bumpers | 556 | 795 |
| Valve covers | 297 | 557 |
| Wheels | 342 | 602 |
| 1,195 | 1,954 | |
| Plating Department | ||
| Automobile bumpers | 165 | 1,169 |
| Valve covers | 179 | 713 |
| Wheels | 180 | 759 |
| 524 | 2,641 | |
| Total | 1,719 | 4,595 |
The management of Orange County Chrome Company now plans to usethe multiple production department factory overhead rate method.The total factory overhead associated with each department is asfollows:
1 | Stamping Department | $111,135.00 |
2 | Plating Department | 113,563.00 |
3 | Total | $224,698.00 |
| Required: | |||||||||||||||||||||||||
| 1. | Determine the multipleproduction department factory overhead rates, using direct laborhours for the Stamping Department and machine hours for the PlatingDepartment. | ||||||||||||||||||||||||
| 2. | Determine the product factory overhead costs, using themultiple production department rates in (1). 1. Determine the multiple production department factory overheadrates, using direct labor hours for the Stamping Department andmachine hours for the Plating Department.
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