Anazi Leather Company manufactures leather handbags and moccasins. The company has been using the single plantwide factory overhead rate method but has decided to evaluate the multiple production department factory overhead rate method to allocate factory overhead. The factory overhead estimated per unit together with direct materials and direct labor will help determine selling prices.

Handbags $=60,000$ units, $3$ hours of direct labor

Moccasins $=40,000$ units, $2$ hours of direct labor

Total budgeted factory overhead cost $=$$$360,000$

The company has two different production departments: Cutting and Sewing. The Cutting Department has a factory overhead budget of $$80,000.$ Each unit will require $1$ direct labor hour or a total of $100,000$ direct labor hours.

The Sewing Department estimates factory overhead in the amount of $$280,000.$ Handbags require $2$ hours of sewing time, and Moccasins require $1$ hour for a total of $160,000$ direct labor hours.

Using the multiple production department factory overhead rate method, compute the total factory overhead to be allocated to each product using direct labor hours as the allocation base. Round interim calculations to two decimal places, if necessary.

Handbags

Moccasins

Total Factory Overhead Allocation