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$85,000

Cut and Sew Department overhead140,700

Total$225,700

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

Pattern Department1,700direct labor hours

Cut and Sew Department2,100

Total3,800direct 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 DepartmentsSmall GloveMedium GloveLarge Glove

Pattern Department0.04 0.05 0.06

Cut and Sew Department0.07 0.09 0.11

Direct labor hours per unit0.11 0.14 0.17

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$fill in the blank 3

per unit

Medium glove$fill in the blank 4

per unit

Large glove$fill in the blank 5

per unit

Multiple Production Department Factory Overhead Rate Method Handy Leather, Inc. produces three stres 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 Out 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 $85,000 Cut and Sew Department overhead 140,700 Total $225,700 The direct labor estimated for each production department was as follows: Pattern Department 1,700 direct labor hours Cut and Sew Department 2,100 Total 3,800 direct labor hours Direct labor hours are used to allocate the production department overhead to the products. 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 0.04 0.05 0.06 Cut and Sew Department 0.07 0.09 0.11 Direct labor hours per unit 0.11 0.14 0.17 If required, round all per unit answers to the nearest cent. .. Determine the two production department factory overse Pattern Department per dih Cut and Sew Department $ perdh . Use the two production department factory overhead rates to determine the factory overhead per ut for each product b. Use the two production department factory overhead rates to determine the factory overhead per unit for each product. Small glove Medium glove per unit per unit Large glove per unit