Performance Gloves, Inc. produces three sizes of sports gloves: small, medium, a
ID: 2337339 • Letter: P
Question
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 283,200.00 425,100.00 $708,300.00 1Pattern Department overhead 2Cut and Sew Department overhead Total The direct labor estimated for each production department was as follows Pattern Department Cut and Sew Department 3,270 Total 2,950 direct labor hours 6,220 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 Pattern Department Cut and Sew Department Direct labor hours per unit Small Glove 0.11 0.12 0.23 Medium Glove 0.10 0.15 0.25 Large Glove 0.15 0.15 0.30 Required a. Determine the two production department factory overhead rates. b. Use the two production department factory overhead rates to determine the factory overhead per unit for each product. If required, round all per-unit answers to the nearest cent.Explanation / Answer
a Pattern department 96 per dlh =283200/2950 Cut and Sew department 130 per dlh =425100/3270 b Small glove 26.16 per unit =(0.11*96)+(0.12*130) Medium glove 29.10 per unit =(0.1*96)+(0.15*130) Large glove 33.90 per unit =(0.15*96)+(0.15*130)