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: 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: Assembly Department Test and Pack Department Blender 750 dlh 2,250 dlh Toaster oven 2,250 750 3,00 dlh 3,000 dlh Total
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: 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: Assembly Department Test and Pack Department Blender 750 dlh 2,250 dlh Toaster oven 2,250 750 3,00 dlh 3,000 dlh Total
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text: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:
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:
Assembly Department
Test and Pack Department
Blender
750 dlh
2,250 dlh
Toaster oven
2,250
750
3,00 dlh
3,000 dlh
Total
Transcribed Image Text: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.
a. Determine the two production department factory overhead rates.
Assembly Department
%24
per direct labor hour
Test and Pack Department
$4
per direct labor hour
b. Determine the total factory overhead and the factory overhead per unit allocated to each product.
Product
Total Factory Overhead
Factory Overhead Per Unit
Blender
2$
Toaster oven
$
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