Question

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 $200,495. 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 563 804 Valve covers 298 565 Wheels 342 602 1,203 1,971 Plating Department Automobile bumpers 165 1,165 Valve covers 178 715 Wheels 173 755 516 2,635 Total 1,719 4,606 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:

Answer 1

1)
Stamping Department (108270/1203) =	90	per direct labor hour
Plating department (92225/2635) =	35	per machine hour

2)

	Automobile bumpers	Valve covers	Wheels	Total
Stamping Department	50670	26820	30780	108270
	(563*90)	(298*90)	(342*90)
Plating Department	40775	25025	26425	92225
	(1165*35)	(715*35)	(755*35)
Total	91445	51845	57205	200495