Answer:
total overhead costs for blending department = $342,000
total machine hours blending department = 2,960
overhead rate per machine hour = $342,000 / 2,960 hours = $115.5405405 per machine hour
total overhead costs for packaging department = $324,000
total direct labor hours packaging department = 800
overhead rate per direct labor hour = $324,000 / 800 hours = $405 per machine hour
product             blending department             packaging department
Whole milk       1,210 x $115.54 = $139,804     260 x $405 = $105,300
Skim milk          980 x $115.54 = $113,230       280 x $405 = $113,400
Cream               770 x $115.54 = $88,966       260 x $405 = $105,300
total                       $342,000                                 $324,000
total overhead rate assigned to each product:
product          blending dep.          packaging dep.           total
Whole milk       $139,804                   $105,300               $245,104
Skim milk          $113,230                    $113,400               $226,630
<u>Cream               $88,966                    $105,300              $194,266  </u>
total                 $342,000                   $324,000              $666,000