The Camper\'s Edge Factory produces two products - canopies and tents. It has tw
ID: 2488426 • Letter: T
Question
The Camper's Edge Factory produces two products - canopies and tents. It has two separate departments - cutting and sewing. The budget is $350,000 for the cutting department and $400,000 for the sewing department. Each canopy requires 2 hours of cutting and 1 hour of sewing. Each tent requires 1 hour of cutting and 6 hours of sewing. The budget estimates that 20,000 canopies and 10,000 tents will be manufactured during the year. Determine the total number of budgeted direct labor hours for the year in each department. Determine the departmental factory overhead rates for both departments. Round your answer to two decimal places, if necessary. Determine the factory overhead allocated per unit for each product using the department factory overhead allocation rates using direct labor hours as the base. Round your answer to two decimal places, if necessary. Tot. FOH per canopy $ Tot. FOH per tent $Explanation / Answer
Cutting Department Sewing Department Budgeted Cost 350000 400000 Canopy Hours 2 1 Tent Hours 1 6 Total Hours 3 7 Units 20000 10000 Total Labour Hours 60000 70000 Cutting 60000 Direct Labour Hours Sewing 70000 Direct Labour Hours Overhead Rates 350000/60000 400000/70000 $ 5.83 per hour $ 5.71 per hour