Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Four Finger Appliance presently uses the multiple production department factory overhead rate method. The factory overhead is as follows:
Assembly Department ......... $ 186,000
Test and Pack Department ........ 120,000
Total ................ $306,000
The direct labor information for the production of 7,500 units of each product is as follows:

Four Finger Appliance used direct labor hours to allocate production department factory overhead to products.
a. Determine the two production department factory overhead rates.
b. Determine the total factory overhead and the factory overhead per unit allocated to eachproduct.

  • CreatedJune 27, 2014
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