Show Me How Print Item Multiple Production Department Factory Overhead Rate Meth
ID: 2540960 • Letter: S
Question
Show Me How Print Item 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 mutiple production department factry overnread rate method of allocating factory overhead costs. Its factory overhead costs were budgeted as follows: Pattern Department overhead Cut and Sew Department overhead $91,800 156,400 $24B,200 Total The direct labor estimated for each production department was as follows Pattern Department Cut and Sew Department2,300 1,800 direct labor hours 4,100 direct labor hours Total 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: 0.04 0.07 0.11 0.05 0.09 0.14 0.06 0.11 0.17 cut and Sew Department Direct labor hours per unit If required, round all per unit answers to the nearest cent a. Det NextExplanation / Answer
Req A: Pre-determined OH rate: estimated overheads? DLH Pattern deptt: $ 91800/1800 = $51 per DLH Cutting and Sew deptt: $ 156400/2300 = $68 per DLH Patern deptt: $ 51 per dlh Cutting and sew $ 68 per dlh Req b Pattern hrs Cutting Hrs Pattern OH Cutting OH Total OH Small glove 0.04 0.07 2.04 4.76 6.8 Medium Glove 0.05 0.09 2.55 6.12 8.67 large Glove 0.06 0.11 3.06 7.48 10.54 Small Glove: $ 6.80 per unit Medium Glove $8.867 per unit large Glove $10.54 per unit