The company has two departments Cutting and Sewing. The company uses the multiple production department factory overhead rate method using direct labor hours. The budgeted factory overhead is $900,000 for the Cutting Department and $500,000 for the Sewing Department. The company plans to make 100,000 shirts and 50,000 pairs of pants. It takes 1 hour to cut and one hour to sew a shirt. It takes 1 hour to cut and 2 hours to sew a pair of pants. How many direct labor hours are being worked in each department? What is the factory overhead rate per direct labor hour for each department? Is it a better decision for the company to use the multiple production department factory overhead rate method rather than the single plantwide factory overhead rate?

Answers should be entered to a single decimal place

Direct labor hours Cutting Dept:

Direct Labor hours Sewing Dept:

Factory Overhead Rate for the Cutting Dept:

Factory Overhead Rate for the Sewing Dept:

How much FOH is allocated to a shirt:

How much FOH is allocated to a pair of pants: