The Camper\'s Edge Factory produces two products-canopies and tents. It has two
ID: 2518312 • Letter: T
Question
The Camper's Edge Factory produces two products-canopies and tents. It has two separate departments-Cutting and Sewing. The factory averhead budo 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 sening. 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 a. Determine the total number of budgeted drect labor hours for the year in each department Cutting Sewing b. Determine the departmental factory overhead rates for both departments. Round your answers to two decimal glaces, if necessary Cutting direct labor hours labor hours Sewing the factory overhead allocated per unit of each product sing the department factory overhead allocation rates using drect labor hours as the base. Round your answers to two decimal places, if necessary Tot, FOH per canopy Tot. FOH per teet DOLL F9Explanation / Answer
Req a: Total DLH: Cutting: Canopies (20,000 units @ 2) 40,000 Tents (10,000 units @1) 10,000 Total DLH of cutting 50,000 Sewing: Canopies (20,000 units @ 1) 20,000 Tents (10,000 units @6) 60,000 Total DLH of Sewing 80,000 Req b: factory Overheads rate per DLH: Cutting : Estimated Overheads / Total DLH of cutting deptt $ 350,000/ 50,000 DLH = $ 7.00 per DLH Sewing: Estimated Overheeads / Total DLH of Sewing Deptt $ 400,000 / 80,000 = $ 5.00 per DLH Req C: Canopy Tents Cutting OH @ 7 280000 70000 Sewing @ 5 100000 300000 Total FOH 380000 370000 Divide number of units 20000 10000 FOH ere unit 19 37 FOH per canopy $19 FOH per Tent $37