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Sure Grip Glove Company produces three types of gloves: small, medium, and large. A glove pattern is first stenciled onto leather in the Pattern Department.
Sure Grip Glove Company produces three types of 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 final glove is cut and sewed together. Sure Grip 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 $110,000 Cut and Sew Department overhead 187,600 Total $297,600 The direct labor estimated for each production department was as follows: Pattern Department 2,200 direct labor hours Cut and Sew Department 2,800 Total 5,000 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 Small Glove Medium Glove Large Glove Pattern Department 0.05 0.06 0.07 Cut and Sew Department 0.09 0.11 0.13 Direct labor hours per unit 0.14 0.17 0.20 Round all per unit answers to nearest whole cent. a. Determine the two production department factory overhead rates (per direct labor hour.) Pattern Department $ per dlh Cut and Sew Department $ per dlh
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