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Total The direct labor information for the production of 8.160 units of each product is as follows: Department Assembly Test


Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens.
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Answer #1
Answer = 1
Step 1: Calculation of the Activity Cost Driver Rate
Activity Cost Driver Rate = Activity Cost / Cost Driver
Activity Cost / Cost Driver =
Activity Cost Driver   Activity Cost   "/"   Cost Driver " = " To Cost Driver Rate
Assembly Direct Labor hours $                     1,58,760 "/"                            2,940 " = " To   $                    54.00
Test and Pack Direct Labor hours $                     1,13,925 "/"                            3,255 " = " To   $                    35.00
Total $                     2,72,685
Answer = 2
CALCULATION OF TOTAL FACTORY OVERHEAD AND PER UNIT
Activity Product Cost Driver Used "X " By Cost Driver Rate   " = " To Activity Cost
Blender   Direct Labor hours
Assembly                                     675 "X " By $                     54.00 " = " To $                 36,450
Test and pack                               2,440 "X " By $                     35.00 " = " To $                 85,400
TOTAL $              1,21,850
Divide by "/" By
Number of units of production $                    8,160
Factory overhead per unit= $                    14.93
Toaster Oven   Direct Labor hours
Assembly                                 2,265 "X " By $                     54.00 " = " To $              1,22,310
Test and pack                                   815 "X " By $                     35.00 " = " To $                 28,525
TOTAL $              1,50,835
Divide by "/" By
Number of units of production $                    8,160
Factory overhead per unit= $                    18.48
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