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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.
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 $161,200 Cut and Sew Department overhead 270,600 Total $431,800 The direct labor estimated for each production department was as follows: Pattern Department 2,600 direct labor hours Cut and Sew Department 3,300 Total 5,900 direct labor hours Direct labor hours are used to allocat
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