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Sportway Inc. produces high-quality tennis racquets and golf clubs using a patented. forming process and high-quality hand-finishing. Products move through two production departments: Forming
Sportway Inc. produces high-quality tennis racquets and golf clubs using a patented. forming process and high-quality hand-finishing. Products move through two production departments: Forming and Finishing. The company uses departmental overhead rates to allocate overhead costs. Overhead is allocated based on machine-hours in Forming and direct labour cost in Finishing. Information related to estimated volumes and denominator values for the coming year are provided below: Tennis Racquets Golf Clubs Annual production and 5,600 8,900 sales Direct materials per unit Direct labour cost per $ 5.10 $ 4.00 unit: Forming Department $ 6.00 Finishing Department $ 3.50 $ 3.50 $ 5.00 Machine hours per unit: Forming Department 0.75 0.25 Finishing Department 0.25 0.50 In addition, the firm budgets manufacturing overhead at $61,000 in the Forming Department and $51,000 in the Finishing Department. Required: 1. Determine the overhead application rate for each department. (Round your answers to 2 decimal places.) Forming Finishing per MH per DLS 2. Determine the total cost per unit of tennis racquets and golf clubs. (Round your answers to 2 decimal places.) Tennis Racquets Golf Clubs Total cost per unit
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