Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

eBook Show Me How Print Item Question Content Area Multiple Production Department Factory Overhead Rate Method Handy Leather, Inc., produces three sizes of sports gloves:

eBook

Show Me How

Print Item

Question Content Area

Multiple Production Department Factory Overhead Rate Method

Handy Leather, Inc., produces three sizes of sports gloves: small, medium, and large. A glove pattern is first stenciled onto leather in the Pattern Department. The stenciled patterns are then sent to the Cut and Sew Department, where the glove is cut and sewed together. Handy Leather uses the multiple production department factory overhead rate method of allocating factory overhead costs. Its factory overhead costs were budgeted as follows:

Pattern Department overhead $294,000
Cut and Sew Department overhead 560,000
Total $854,000

The direct labor estimated for each production department was as follows:

Pattern Department 42,000 direct labor hours
Cut and Sew Department 56,000
Total 98,000 direct labor hours

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 0.30 0.20 0.45
Cut and Sew Department 0.40 0.55 0.70
Direct labor hours per unit 0.70 0.75 1.15

If required, round all per unit answers to the nearest cent.

a. Determine the two production department factory overhead rates.

Pattern department $fill in the blank 1 per dlh
Cut and Sew department $fill in the blank 2 per dlh

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 $ ______ per unit
Large glove $ ______ per unit

Feedback Area

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Continuity Management Audit A Complete Guide

Authors: Gerardus Blokdyk

2019 Edition

0655845860, 978-0655845867

More Books

Students also viewed these Accounting questions