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   Total       3,000 dlh       3,000 dlh   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 $ per direct labor hour Test and Pack Department $ 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 $ $ Toaster oven $

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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  
Total       3,000 dlh       3,000 dlh

 

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 $ per direct labor hour
Test and Pack Department $ 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 $ $
Toaster oven $
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