Spotted Cow Dairy Company manufactures three products-whole milk, skim milk, and cream-in two production departments, Blending and Packing. The factory overhead for Spotted Cow Dairy is $299,700.The three products consume both machine hours and direct labor hours in the two production departments as follows:
| Direct Labor Hours |
Machine Hours |
| Blending Department |
| Whole milk |
260 |
650 |
| Skim milk |
245 |
710 |
| Cream |
215 |
260 |
| 720 |
1,620 |
| Packing Department |
| Whole milk |
470 |
500 |
| Skim milk |
300 |
415 |
| Cream |
130 |
165 |
| 900 |
1,080 |
| Total |
1,620 |
2,700
|
2. Determine the product factory overhead costs, using (a) the direct labor hour plantwide factory overhead rate and (b) the machine hour plantwide factory overhead rate. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.