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 $
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 $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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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