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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 and

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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 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:

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Tennis Racquets Golf Clubs Annual production and sales 6,700 10,550 Direct materials per unit $ 5.00 $ 4.10 Direct labour cost per unit: Forming Department $ 11.00 $ 6.00 Finishing Department $ 6.00 $ 6.00 Machine hours per unit: Forming Department 0.75 0.25 Finishing Department 0.25 0.50

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