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please help me with the first two questions Multiple Production Department Factory Overhead Rate Method Handy Leather, Inc, produces three sizes of sports gloves: small,
please help me with the first two questions
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 $183,600 Cut and Sew Department overhead 306,000 Total $489,600 The direct labor estimated for each production department was as follows: Pattern Department Cut and Sew Department Total 2,700 direct labor hours 3,400 6,100 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 0.04 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. a. Determine the two production department factory overhead rates Pattern Department per dih Cut and Sew Department per dih b. Use the two production department factory overhead rates to determine the factory overhead per unit for each product. factory overhead rate method of allocating factory overhead costs. Its factory overhead costs were budgeted as follows: Pattern Department overhead $183,600 Cut and Sew Department overhead 306,000 Total $489,600 The direct labor estimated for each production department was as follows: Pattern Department 2,700 direct labor hours Cut and Sew Department 3,400 Total 6,100 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 0.04 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. a. Determine the two production department factory overhead rates. per din Pattern Department Cut and Sew Department b. Use the two production department factory overhead rates to determine the factory overhead per unit for each product per din Small glove per unit Medium glove per unit Large glove per unit Activity Based Costing and Product Cost Distortion Four Finger Appliance Company manufactures imall kitchen appliances. The product line consists of blenders and toaster ovens, Four Finger Appliance presently uses the multiple production department factory overhead rate method. The factory overhead is as follows: Assembly Department $186,000 120,000 Test and Pack Department Total $306,000 The direct labor Information for the production of 7,500 units of each product is as follows: Assembly Department Test and Pack Department Blender 750 din 2,250 din 750 2,250 Toaster oven Total 3,000 dih 3,000 din Four Finger Appliance used direct labor hours to allocate production department factory overhead to products. The management of Four Finger Appliance Company has asked you to use activity-based costing to allocate factory overhead costs to the two products. You have determined that $81,000 of factory overhead from each of the production departments can be associated with setup activity ($162,000 in total). Company records indicate that blenders required 135 setups, while the toaster ovens required only 45 setups. Each product has a production volume of 7,500 units. If required, round all per unit answers to the nearest cent. a. Determine the three activity rates (assembly, test and pack, and setup). Assembly Activity per dih Test and Pack Activity per dih Setup Activity per setup Test and Pack Department 120,000 $306,000 Total The direct labor information for the production of 7,500 units of each product is as follows: Assembly Department 750 din Blender Test and Pack Department 2,250 dih 750 Toaster oven 2,250 3,000 din Total 3,000 din Four Finger Appliance used direct labor hours to allocate production department factory overhead to products. The management of Four Finger Appliance Company has asked you to use activity-based costing to allocate factory overhead costs to the two products. You have determined that $81,000 of factory overhead from each of the production departments can be associated with setup activity ($162,000 in total). Company records Indicate that blenders required 135 setups, while the toaster ovens required only 45 setups. Each product has a production volume of 7,500 units If required, round all per unit answers to the nearest cent. per dih a. Determine the three activity rates (assembly, test and pack, and setup). Assembly Activity Test and Pack Activity Setup Activity per setup per din b. Determine the total factory overhead and factory overhead per unit allocated to each product using the activity rates in (a). Product Total Factory Overhead Factory Overhead Cost Per Unit Blender Toaster oven Step by Step Solution
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