Handy Leather, Inc., produces three sizes of sports gloves: small, medium, and large. A glove pattern...
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Handy Leather, Inc., produces three sizes of sports gloves: small, medium, and large. A glove pattern is first stenciled onto leather in the Pattern Department. The stenciled patterns are then sent to the Cut and Sew Department, where the glove is cut and sewed together. Handy Leather uses the multiple production department factory overhead rate method of allocating factory overhead costs. Its factory overhead costs were budgeted as follows: Pattern Department overhead Cut and Sew Department overhead Total $173,600 287,000 $460,600 The direct labor estimated for each production department was as follows: Pattern Department 2,800 direct labor hours 3,500 Cut and Sew Department Total 6,300 direct labor hours Direct labor hours are used to allocate the production department overhead to the products. The direct labor hours per unit for each product for each production department were obtained from the engineering records as follows: Production Departments Medium Glove Large Glove Pattern Department Cut and Sew Department Small Glove 0.05 0.06 0.07 0.08 0.10 0.12 Direct labor hours per unit 0.13 0.16 0.19 If required, round all per unit answers to the nearest cent. a. Determine the two production department factory overhead rates. Pattern Department per dlh Cut and Sew Department per dlh b. Use the two production department factory overhead rates to determine the factory overhead per unit for each product. Small glove $ Medium glove Large glove per unit per unit per unit Handy Leather, Inc., produces three sizes of sports gloves: small, medium, and large. A glove pattern is first stenciled onto leather in the Pattern Department. The stenciled patterns are then sent to the Cut and Sew Department, where the glove is cut and sewed together. Handy Leather uses the multiple production department factory overhead rate method of allocating factory overhead costs. Its factory overhead costs were budgeted as follows: Pattern Department overhead Cut and Sew Department overhead Total $173,600 287,000 $460,600 The direct labor estimated for each production department was as follows: Pattern Department 2,800 direct labor hours 3,500 Cut and Sew Department Total 6,300 direct labor hours Direct labor hours are used to allocate the production department overhead to the products. The direct labor hours per unit for each product for each production department were obtained from the engineering records as follows: Production Departments Medium Glove Large Glove Pattern Department Cut and Sew Department Small Glove 0.05 0.06 0.07 0.08 0.10 0.12 Direct labor hours per unit 0.13 0.16 0.19 If required, round all per unit answers to the nearest cent. a. Determine the two production department factory overhead rates. Pattern Department per dlh Cut and Sew Department per dlh b. Use the two production department factory overhead rates to determine the factory overhead per unit for each product. Small glove $ Medium glove Large glove per unit per unit per unit
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a To determine the two production department factory overhead rates we need to divide the budgeted o... View the full answer
Related Book For
Forensic And Investigative Accounting
ISBN: 9780808056300
10th Edition
Authors: G. Stevenson Smith D. Larry Crumbley, Edmund D. Fenton
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