Question

Can you please help me out with question B. on this problem please? I inserted the word BLANK where the answer is supposed to be for question B of this problem. Can you please help me out with this?

Multiple Production Department Factory Overhead Rate Method

Performance Gloves, 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. Performance Gloves 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		$102,900
Cut and Sew Department overhead		169,000
	Total	$271,900

The direct labor estimated for each production department was as follows:

Pattern Department		2,100	direct labor hours
Cut and Sew Department		2,600
	Total	4,700	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.

Pattern Department	$49 per dlh
Cut and Sew Department	$65 per dlh

b. Use the two production department factory overhead rates to determine the factory overhead per unit for each product.

Small glove	$ BLANK per unit
Medium glove	$ BLANK per unit
Large glove	$ BLANK per unit

Answer 1

b.
	Factory overhead per unit
Small glove	7.65 [ (0.05*49) + (0.08*65) ]	per unit
Medium glove	9.44 [ (0.06*49) + (0.10*65) ]	per unit
Large glove	11.23 [ (0.07*49) + (0.12*65) ]	per unit