Question

Orange County Chrome Company manufactures three chrome-platedproducts—automobile 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.

Stamping Department:

per direct laborhour

Plating Department:

per machine hour

2. Determine the product factory overhead costs, using themultiple production department rates in (1).

1		Automobile Bumpers	Valve Covers	Wheels
2
3
4	Total