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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 Cut and Sew Department overhead Total The direct labor estimated for each production department was as follows: Pattern Department Cut and Sew Department Total 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: Medium Glove 0.05 0.10 0.15 Pattern Department Cut and Sew Department 1,600 direct labor hours Production Departments Pattern Department Cut and Sew Department Direct labor hours per unit If required, round all per unit answers to the nearest cent. 2,000 3,600 direct labor hours Small glove Medium glove Large glove $ Small Glove 0.04 0.08 $112,000 186,000 $298,000 0.12 a. Determine the two production department factory overhead rates. per unit per unit per dlh per dih b. Use the two production department factory overhead rates to determine the factory overhead per unit for each product. per unit Large Glove 0.06 0.12 0.18

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 Cut and Sew Department overhead Total The direct labor estimated for each production department was as follows: Pattern Department Cut and Sew Department Total 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: Medium Glove 0.05 0.10 0.15 Pattern Department Cut and Sew Department 1,600 direct labor hours Production Departments Pattern Department Cut and Sew Department Direct labor hours per unit If required, round all per unit answers to the nearest cent. 2,000 3,600 direct labor hours Small glove Medium glove Large glove $ Small Glove 0.04 0.08 $112,000 186,000 $298,000 0.12 a. Determine the two production department factory overhead rates. per unit per unit per dlh per dih b. Use the two production department factory overhead rates to determine the factory overhead per unit for each product. per unit Large Glove 0.06 0.12 0.18

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter4: Job-order Costing And Overhead Application
Section: Chapter Questions
Problem 34BEB: Use the following information for Brief Exercises 4-34 and 4-35: Sanjay Company manufactures a...
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Problem Set: Module 3 1. EX.04.06 2. EX.04.07.ALGO 3. EX.04.05.ALGO 4. TMM.04.06 5. EX.04.03.ALGO cengagenow.com + Multiple Production Department Factory Overhead Rate Method Pattern Department overhead Cut and Sew Department overhead 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: Total Pattern Department Cut and Sew Department Total The direct labor estimated for each production department was as follows: Pattern Department Cut and Sew Department 1,600 direct labor hours. 2,000 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 Pattern Department Cut and Sew Department Direct labor hours per unit If required, round all per unit answers to the nearest cent. Small glove Medium glove Large glove 3,600 direct labor hours $ $ $ $112,000 186,000 $298,000 Small Glove 0.04 0.08 0.12 per unit 40 Medium Glove per dlh per dlh per unit per unit 0.05 0.10 a. Determine the two production department factory overhead rates. 0.15 Large Glove 0.06 ... 0.12 b. Use the two production department factory overhead rates to determine the factory overhead per unit for each product. 0.18 S Ⓒ
Transcribed Image Text:Problem Set: Module 3 1. EX.04.06 2. EX.04.07.ALGO 3. EX.04.05.ALGO 4. TMM.04.06 5. EX.04.03.ALGO cengagenow.com + Multiple Production Department Factory Overhead Rate Method Pattern Department overhead Cut and Sew Department overhead 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: Total Pattern Department Cut and Sew Department Total The direct labor estimated for each production department was as follows: Pattern Department Cut and Sew Department 1,600 direct labor hours. 2,000 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 Pattern Department Cut and Sew Department Direct labor hours per unit If required, round all per unit answers to the nearest cent. Small glove Medium glove Large glove 3,600 direct labor hours $ $ $ $112,000 186,000 $298,000 Small Glove 0.04 0.08 0.12 per unit 40 Medium Glove per dlh per dlh per unit per unit 0.05 0.10 a. Determine the two production department factory overhead rates. 0.15 Large Glove 0.06 ... 0.12 b. Use the two production department factory overhead rates to determine the factory overhead per unit for each product. 0.18 S Ⓒ
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