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 st Cut and sewed together. Handy Leather uses the multiple production department factory overhead rate method of allocating factory overhead costs. Its factory overh Pattern Department overhead Cut and Sew Department overhead $183,600 306,000 $489,600 Total The direct labor estimated for each production department was as follows: Pattern Department 2,700 direct labor hours Cut and Sew Department 3,400 Total 6,100 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 depam Production Departments Small Glove Medium Glove Large Glove Pattern Department 0.04 0,05 0.06 Cut and Sew Department 0,07 0.09 0.11 Direct labor hours per unit 0.11 0.14 0.17 If required, round all per unit answers to the nearest cent. a. Determine the two production department factory overhead rates. per dih per dib Pattern Department Cut and Sew Department

FINANCIAL ACCOUNTING
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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 sten-
cut and sewed together. Handy Leather uses the multiple production department factory overhead rate method of allocating factory overhead costs. Its factory overhead
Pattern Department overhead
Cut and Sew Department overhead
$183,600
306,000
$489,600
Total
The direct labor estimated for each production department was as follows:
Pattern Department
2,700 direct labor hours
Cut and Sew Department
3,400
Total
6,100 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 departm
Production Departments
Small Glove Medium Glove
Large Glove
0.04
0,05
0.06
Pattern Department
Cut and Sew Department.
0.07
0.09
0.11
Direct labor hours per unit
0.11
0.14
0.17
If required, round all per unit answers to the nearest cent.
a. Determine the two production department factory overhead rates.
Pattern Department
per dih
per dih
Cut and Sew Department
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
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 sten- cut and sewed together. Handy Leather uses the multiple production department factory overhead rate method of allocating factory overhead costs. Its factory overhead Pattern Department overhead Cut and Sew Department overhead $183,600 306,000 $489,600 Total The direct labor estimated for each production department was as follows: Pattern Department 2,700 direct labor hours Cut and Sew Department 3,400 Total 6,100 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 departm Production Departments Small Glove Medium Glove Large Glove 0.04 0,05 0.06 Pattern Department Cut and Sew Department. 0.07 0.09 0.11 Direct labor hours per unit 0.11 0.14 0.17 If required, round all per unit answers to the nearest cent. a. Determine the two production department factory overhead rates. Pattern Department per dih per dih Cut and Sew Department 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
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