Question
Sizzle Factory produces two products: gates and security doors. The total factory overhead is budgeted at $500,000 for the year, divided between two departments: Cutting,
Sizzle Factory produces two products: gates and security doors. The total factory overhead is budgeted at $500,000 for the year, divided between two departments: Cutting, $310,000, and welding, $190,000. Each gate requires 2 direct labor hours in Cutting and 3 direct labor hours in welding. Each door requires 4 direct labor hours in Cutting and 6 direct labor hours in Welding. Production for the year is budgeted for 10,000 gates and 20,000 doors. Round your answers to two decimal places, if necessary.
a. Determine the total number of budgeted direct labor hours for the year in each department.
b. Determine the departmental factory overhead rate for each department.
c. Determine the factory overhead allocated per unit of each product, using the departmental factory overhead rates determined in (b).
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