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Direct labor hours are used to allocate the production department overhead to the products. The direct labor hours per unit for each product for
Direct labor hours are used to allocate the production department overhead to the products. The direct labor hours per unit for each product for each production department were obtained from the engineering records as follows: Production Departments Small Glove Medium Glove Large Glove Pattern Department 0.05 Cut and Sew Department 0.09 Direct labor hours per unit If required, round all per unit answers to the nearest cent. a. Determine the two production department factory overhead rates. Pattern Department per dlh per dlh Cut and Sew Department b. Use the two production department factory overhead rates to determine the factory overhead per unit for each product. Small glove per unit Medium glove Large glove. $ 0.04 0.07 0.11 per unit per unit 0.14 0.06 0.11 0.17
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SOLUTION a To determine the two production department factory overhead rates we need to calculate the total direct labor hours for each production department and then divide by the total direct labor ...Get Instant Access to Expert-Tailored Solutions
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