Question

The total factory overhead for Continental Styles, Inc., is budgeted for the year at $360,000, divided into two departments: Cutting, $120,000, and Sewing, $240,000. Continental manufactures two types of men’s pants: jeans and khakis. The jeans require 0.05 direct labor hour in Cutting and 0.10 direct labor hour in Sewing. The khakis require 0.10 direct labor hour in Cutting and 0.05 direct labor hour in Sewing. Each product is budgeted for 20,000 units of production for the year. Determine
(a) The total number of budgeted direct labor hours for the year in each department,
(b) The departmental factory overhead rates for both departments, and
(c) The factory overhead allocated per unit for each product using the department factory overhead allocation rates.



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  • CreatedMay 23, 2012
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