Question

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 costs for last year is provided below:
In addition, the firm budgets manufacturing overhead at $52,000 in the Forming Department and $45,000 in the Finishing Department.
Required:
1. Determine the overhead application rate for each department.
2. Determine the total cost per unit of tennis racquets and golf clubs


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  • CreatedJuly 08, 2015
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