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Exercise 5 - 1 3 Overhead Application [ LO 3 , LO 5 ] Sportway Inc. produces high - quality tennis racquets and golf clubs
Exercise Overhead Application LO LO Sportway Inc. produces highquality tennis racquets and golf clubs using a patented forming process and highquality handfinishing. Products move through two production departments: Forming and Finishing. The company uses departmental overhead rates to allocate overhead costs. Overhead is allocated based on machinehours in Forming and direct labour cost in Finishing. Information related to costs for last year is provided below: Tennis Racquets Golf Clubs Annual production and sales units Direct materials cost per unit $ $ Direct labour cost per unit: Forming Department $ $ Finishing Department $ $ Machinehours per unit: Forming Department Finishing Department In addition, the firm budgets manufacturing overhead at $ in the Forming Department and $ in the Finishing Department. Required: Determine the overhead application rate for each department. Round your answers to decimal places. Determine the total cost per unit of tennis racquets and golf clubs. Round your intermediate calculations and final answers to decimal places.
Exercise Overhead Application LO LO
Sportway Inc. produces highquality tennis racquets and golf clubs using a patented forming process and highquality handfinishing. Products move through two production departments: Forming and Finishing. The company uses departmental overhead rates to allocate overhead costs. Overhead is allocated based on machinehours in Forming and direct labour cost in Finishing. Information related to costs for last year is provided below:
Tennis Racquets Golf Clubs
Annual production and sales units
Direct materials cost per unit $ $
Direct labour cost per unit:
Forming Department $ $
Finishing Department $ $
Machinehours per unit:
Forming Department
Finishing Department
In addition, the firm budgets manufacturing overhead at $ in the Forming Department and $ in the Finishing Department.
Required:
Determine the overhead application rate for each department. Round your answers to decimal places.
Determine the total cost per unit of tennis racquets and golf clubs. Round your intermediate calculations and final answers to decimal places.
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