Question

W HOW Multiple Production Department Factory Overhead Rate Method 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 $109,800 Cut and Sew Department overhead 186,300 Total $296,100 The direct labor estimated for each production department was as follows: Pattern Department Cut and Sew Department 1,800 direct labor hours 2,300 Total 4,100 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 Small Glove Medium Glove Large Glove Pattern Department 0.05 0.06 0.07 Cut and Sew Department 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 Check My Work Previous Next 1:

Answer 1

solution Factory Oveel weg (a) calculating two pueduction depautment factory orewhead mates Patteun Department (Patteun dep autment orecchied) Patteun Department labon howed) a dwent 61 $1091800 (Factory overhead Male) 1,800 17 cut and slus Department cut and sew Department oveuhead cut and sew Depautment diuect Labou $ 188,300 = 81 2300 (factory o veccheco mate)

peu wnet fall each (6) factory ovewhead peu Rua duct (a) small Glove (61* 0.05)+(81*0.08) 9.53 (Factory ovewhead unit) pen (6) Medium Glove = 161* 0.06) + (8140 810.10) ll: 76 overhead pou unit) (eFactory (c) Lange Gloves Санде hove = (61* 0.07) +(81*0.12) 13.99 ( ( overhead peu factory a venit)