Multiple Production Department Factory Overhead Rate Method Handy Leather, Inc., produces three sizes of sports gloves: small, medium, and large. A glove pattern is first stenciled onto leather in the Pattern Department. The stenciled patterns are then sent to the C Sew Department, where the glove is cut and sewed together. Handy Leather uses the multiple production department factory overhead rate method of allocating factory overhead costs. Its factory overhea costs were budgeted as follows: Pattern Department overhead $88,200 Cut and Sew Department overhead 149,500 Total $237,700 The direct labor estimated for each production department was as follows: Pattern Department 1,800 direct labor hours
Multiple Production Department Factory Overhead Rate Method Handy Leather, Inc., produces three sizes of sports gloves: small, medium, and large. A glove pattern is first stenciled onto leather in the Pattern Department. The stenciled patterns are then sent to the C Sew Department, where the glove is cut and sewed together. Handy Leather uses the multiple production department factory overhead rate method of allocating factory overhead costs. Its factory overhea costs were budgeted as follows: Pattern Department overhead $88,200 Cut and Sew Department overhead 149,500 Total $237,700 The direct labor estimated for each production department was as follows: Pattern Department 1,800 direct labor hours
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 5E: Handy Leather, Inc., produces three sizes of sports gloves: small, medium, and large. A glove...
Related questions
Question
(4) ABC:
![Multiple Production Department Factory Overhead Rate Method
Handy Leather, Inc., produces three sizes of sports gloves: small, medium, and large. A glove pattern is first stenciled onto leather in the Pattern Department. The stenciled patterns are then sent to the Cut and
Sew Department, where the glove is cut and sewed together. Handy Leather uses the multiple production department factory overhead rate method of allocating factory overhead costs. Its factory overhead
costs were budgeted as follows:
Pattern Department overhead
$88,200
Cut and Sew Department overhead
149,500
Total
$237,700
The direct labor estimated for each production department was as follows:
Pattern Department
1,800 direct labor hours
Cut and Sew Department
2,300
Total
4,100 direct labor hours
Direct labor hours are used to allocate the production department overhead to the products. The direct labor hours per unit for each product for each production department were obtained from the engineering
records as follows:
Production Departments
Small Glove
Medium Glove
Large Glove
Pattern Department
0.05
0.06
0.07
Cut and Sew Department
0.08
0.10
0.12
Direct labor hours per unit
0.13
0.16
0.19
If required, round all per unit answers to the nearest cent.
a. Determine the two production department factory overhead rates.
Pattern Department
$
per dlh
Cut and Sew Department
$4
per dlh
b. Use the two production department factory overhead rates to determine the factory overhead per unit for each product.
Small glove
per unit
Medium glove
$
per unit
Large glove
$
per unit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1b8efa38-8533-46f7-89fb-1d7601c650e1%2F2068ed09-ac55-451e-9bec-74deef987288%2Fer5q33d9_processed.png&w=3840&q=75)
Transcribed Image Text:Multiple Production Department Factory Overhead Rate Method
Handy Leather, Inc., produces three sizes of sports gloves: small, medium, and large. A glove pattern is first stenciled onto leather in the Pattern Department. The stenciled patterns are then sent to the Cut and
Sew Department, where the glove is cut and sewed together. Handy Leather uses the multiple production department factory overhead rate method of allocating factory overhead costs. Its factory overhead
costs were budgeted as follows:
Pattern Department overhead
$88,200
Cut and Sew Department overhead
149,500
Total
$237,700
The direct labor estimated for each production department was as follows:
Pattern Department
1,800 direct labor hours
Cut and Sew Department
2,300
Total
4,100 direct labor hours
Direct labor hours are used to allocate the production department overhead to the products. The direct labor hours per unit for each product for each production department were obtained from the engineering
records as follows:
Production Departments
Small Glove
Medium Glove
Large Glove
Pattern Department
0.05
0.06
0.07
Cut and Sew Department
0.08
0.10
0.12
Direct labor hours per unit
0.13
0.16
0.19
If required, round all per unit answers to the nearest cent.
a. Determine the two production department factory overhead rates.
Pattern Department
$
per dlh
Cut and Sew Department
$4
per dlh
b. Use the two production department factory overhead rates to determine the factory overhead per unit for each product.
Small glove
per unit
Medium glove
$
per unit
Large glove
$
per unit
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
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 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub