Gourmet Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Gourmet Appliance presently uses the multiple production department factory overhead rate method. The factory overhead is as follows:

The direct labor information for the production of 5,000 units of each product is as follows:

Gourmet 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 each product.

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Assembly Department Test and Pack Department $108,000 70,000 Total $178,000 Test and Pack Assembly Department Department Blender Toaster oven Total 500 dlh 1,500 2,000 dlh 1,500 dlh 500 2,000 dlh