Obj. 3 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 Cut and Sew Department overhead Total $294,000 560,000 $854,000 The direct labor estimated for each production department was as follows: Pattern Department Cut and Sew Department Total 42,000 direct labor hours 56,000 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 Pattern Department Cut and Sew Department Direct labor hours per unit Small Glove 0.30 0.40 Medium Glove 0.20 0.55 Large Glove 0.45 0.70 1.15 0.70 0.75 a. Determine the two production department factory overhead rates. b. Use the two production department factory overhead rates to determine the factory overhead per unit for each product. Production department factory overhead rates: Pattern Department Cut and Sew Department Factory overhead Direct labor hours Production department rate Idlh /dlh b. Direct Labor Hours per Unit Production Department Rate Factory Overhead X = Small Glove: Pattern Department Cut and Sew Department Total factory overhead per unit /dlh dlh = = x Medium Glove: Pattern Department Cut and Sew Department Total factory overhead per unit dlh Idlh = = x = x Large Glove: Pattern Department Cut and Sew Department Total factory overhead per unit Idlh /dlh x