eBook Question Content Area Multiple production department factory overhead rate method Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Four Finger Appliance presently uses the multiple production department factory overhead rate method. The factory overhead is as follows: Line Item Description Amount Assembly Department $186,000 Test and Pack Department 120,000 Total $306,000 The direct labor information for the production of 7,500 units of each product is as follows: Kitchen Appliances Assembly Department Test and Pack Department 2,250 dlh Blender Toaster oven Total Four Finger Appliance used direct labor hours to allocate production department factory overhead to products. If required, round all per unit answers to the nearest cent. 750 dlh 2,250 3,000 dlh 750 3,000 dlh a. Determine the two production department factory overhead rates. Assembly Department fill in the blank 1 of 2$ per direct labor hour Test and Pack Department fill in the blank 2 of 2 per direct labor hour b. Determine the total factory overhead and the factory overhead per unit allocated to each product. Product Total Factory Overhead Factory Overhead Per Unit Blender fill in the blank 1 of 4$ Toaster oven fill in the blank 3 of 4$ fill in the blank 2 of 4$ fill in the blank 4 of 4$
eBook Question Content Area Multiple production department factory overhead rate method Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Four Finger Appliance presently uses the multiple production department factory overhead rate method. The factory overhead is as follows: Line Item Description Amount Assembly Department $186,000 Test and Pack Department 120,000 Total $306,000 The direct labor information for the production of 7,500 units of each product is as follows: Kitchen Appliances Assembly Department Test and Pack Department 2,250 dlh Blender Toaster oven Total Four Finger Appliance used direct labor hours to allocate production department factory overhead to products. If required, round all per unit answers to the nearest cent. 750 dlh 2,250 3,000 dlh 750 3,000 dlh a. Determine the two production department factory overhead rates. Assembly Department fill in the blank 1 of 2$ per direct labor hour Test and Pack Department fill in the blank 2 of 2 per direct labor hour b. Determine the total factory overhead and the factory overhead per unit allocated to each product. Product Total Factory Overhead Factory Overhead Per Unit Blender fill in the blank 1 of 4$ Toaster oven fill in the blank 3 of 4$ fill in the blank 2 of 4$ fill in the blank 4 of 4$
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Topic Video
Question
Transcribed Image Text:eBook
Question Content Area
Multiple production department factory overhead rate method
Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster
ovens. Four Finger Appliance presently uses the multiple production department factory overhead rate method. The
factory overhead is as follows:
Line Item Description
Amount
Assembly Department $186,000
Test and Pack Department 120,000
Total
$306,000
The direct labor information for the production of 7,500 units of each product is as follows:
Kitchen Appliances Assembly Department Test and Pack Department
2,250 dlh
Blender
Toaster oven
Total
Four Finger Appliance used direct labor hours to allocate production department factory overhead to products.
If required, round all per unit answers to the nearest cent.
750 dlh
2,250
3,000 dlh
750
3,000 dlh
a. Determine the two production department factory overhead rates.
Assembly Department fill in the blank 1 of 2$ per direct labor hour
Test and Pack Department fill in the blank 2 of 2 per direct labor hour
b. Determine the total factory overhead and the factory overhead per unit allocated to each product.
Product Total Factory Overhead Factory Overhead Per Unit
Blender fill in the blank 1 of 4$
Toaster oven fill in the blank 3 of 4$
fill in the blank 2 of 4$
fill in the blank 4 of 4$
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education