Kettle Factory produces two similar products: gloves and mittens. The total factory overhead budget is $1,050,000 with 600,000 estimated direct labor hours. It is further estimated that glove production will require 375,000 direct labor hours and mitten production will require 225,000 direct labor hours. Round your answers to two decimal places, if necessary. a. Determine the single plantwide factory overhead rate based on direct labor hours. $fill in the blank 1 per direct labor hour b. How much is the factory overhead cost per pair of gloves if each pair requires 2 hours to produce? $fill in the blank 2 c. How much is the factory overhead cost per pair of mittens if each pair takes 1.5 hours to produce? $fill in the blank 3 d. How much total factory overhead will be allocated to glove production if 187,500 pairs are budgeted and 190,000 pairs are actually produced during the period? Use your answer from (b) above. $fill in the blank 4 e. How much total factory overhead will be allocated to mitten production if 150,000 pairs are budgeted and 140,000 pairs are actually produced during the period? Use your answer from (c) above. $fill in the blank 5
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Kettle Factory produces two similar products: gloves and mittens. The total factory
a. Determine the single plantwide factory overhead rate based on direct labor hours.
$fill in the blank 1 per direct labor hour
b. How much is the
$fill in the blank 2
c. How much is the factory overhead cost per pair of mittens if each pair takes 1.5 hours to produce?
$fill in the blank 3
d. How much total factory overhead will be allocated to glove production if 187,500 pairs are budgeted and 190,000 pairs are actually produced during the period? Use your answer from (b) above.
$fill in the blank 4
e. How much total factory overhead will be allocated to mitten production if 150,000 pairs are budgeted and 140,000 pairs are actually produced during the period? Use your answer from (c) above.
$fill in the blank 5
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