Pattern Department overhead Cut and Sew Department overhead Total $112,200 184,800 $297,000 The direct labor estimated for each production department was as follows: Pattern Department 1,700 direct labor hours Cut and Sew Department 2,100 Total 3,800 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 Pattern Department Cut and Sew Department Direct labor hours per unit If required, round all per unit answers to the nearest cent. Medium glove 0.05 66 Large glove 0.08 0.13 a. Determine the two production department factory overhead rates. Pattern department $ ✓per dih Cut and Sew department $ 88 ✓per dlh per unit 0.06 0.10 per unit 0.16 per unit Large Glove b. Use the two production department factory overhead rates to determine the factory overhead per unit for each product.. Small glove 0.07 0.12 as follows: 0.19

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Pattern Department overhead
Cut and Sew Department overhead
$112,200
184,800
$297,000
The direct labor estimated for each production department was as follows:
Pattern Department
1,700 direct labor hours
Cut and Sew Department
2,100
Total
3,800 direct labor hours
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:
Production Departments
Small Glove
$
Pattern Department
Cut and Sew Department
Direct labor hours per unit
If required, round all per unit answers to the nearest cent.
a. Determine the two production department factory overhead rates.
Pattern department $
66 ✔ per dlh
Cut and Sew department $
0.05
0.08
0.13
Medium Glove
88 ✔ per dlh
per unit
per unit
0.06
tory overhead costs were budgeted as follows:
0.10
0.16
Large Glove
0.07
0.12
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
Large glove
0.19
Transcribed Image Text:Pattern Department overhead Cut and Sew Department overhead $112,200 184,800 $297,000 The direct labor estimated for each production department was as follows: Pattern Department 1,700 direct labor hours Cut and Sew Department 2,100 Total 3,800 direct labor hours 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: Production Departments Small Glove $ Pattern Department Cut and Sew Department Direct labor hours per unit If required, round all per unit answers to the nearest cent. a. Determine the two production department factory overhead rates. Pattern department $ 66 ✔ per dlh Cut and Sew department $ 0.05 0.08 0.13 Medium Glove 88 ✔ per dlh per unit per unit 0.06 tory overhead costs were budgeted as follows: 0.10 0.16 Large Glove 0.07 0.12 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 Large glove 0.19
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