Multiple production department factory overhead rate method

Spielman 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. Spielman Leather uses the multiple production department factory overhead rate method of allocating factory overhead costs. Its factory overhead costs were budgeted as follows:

Line Item Description Amount

Pattern Department overhead $$165,600$

Cut and Sew Department overhead $276,000$

Total $$441,600$

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

Line Item Description Amount

Pattern Department $2,400$ direct labor hours

Cut and Sew Department $3,000$

Total $5,400$ 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 $0\mathrm{.}040\mathrm{.}050\mathrm{.}06$

Cut and Sew Department $0\mathrm{.}080\mathrm{.}100\mathrm{.}12$

Direct labor hours per unit $0\mathrm{.}120\mathrm{.}150\mathrm{.}18$

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below.

Open spreadsheet

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 $1$ of $2$$

per dlh

Cut and Sew department fill in the blank $2$ of $2$$

per dlh

b$.$ Use the two production department factory overhead rates to determine the factory overhead per unit for each product.

Product Amount

Small glove fill in the blank $1$ of $3$$

per unit

Medium glove fill in the blank $2$ of $3$$

per unit

Large glove fill in the blank $3$ of $3$$

per unit