Pattern Department overhead $216,000 Gut and Sew Department overhead 960,000 Total $1,176,000 The direct labor estimated for each production department was as follows: Pattern Department overhead 36,000 direct labor hours Cut and Sew Department 960,000 Total $96,000 direct labor hours Production Departments Small Glove Medium Glove Large Glove Pattern Department 0.20 0.24 0.30 Cut and Sew Department 0.50 0.60 0.72 Direct labor hours per 0.70 0.84 1.02 unit

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

multiple production department factory i=overhead rate method

perfomance Gloves,Inc. produces three size of sports gloves:small,medium and large.A glove pattern is first stenciled onto leather in the Pattern Department,where the gloves is cut and sewed together.

Perfomance Gloves uses the multiple production department factiey overhead rate methid of allocating factory overhead costs.Its factory overhead costs were budgeted as follows:

The direct labor estimated for each production department was as follows:

Direct labor hours are used to allocate the production department overhead to the products.The direct labor hours per unit for each product for eacg production department were obtained from the engineering records as follows:

a) Determine the two production department factory overhead rates.

b) Use the two production department factory rates to detrmine the factory overhead per unit for each product.

 

Pattern Department overhead
$216,000
Gut and Sew Department overhead 960,000
Total
$1,176,000
The direct labor estimated for each production department was as
follows:
Pattern Department overhead 36,000 direct labor hours
Cut and Sew Department
960,000
Total
$96,000 direct labor hours
Transcribed Image Text:Pattern Department overhead $216,000 Gut and Sew Department overhead 960,000 Total $1,176,000 The direct labor estimated for each production department was as follows: Pattern Department overhead 36,000 direct labor hours Cut and Sew Department 960,000 Total $96,000 direct labor hours
Production Departments
Small Glove Medium Glove Large Glove
Pattern Department
0.20
0.24
0.30
Cut and Sew Department
0.50
0.60
0.72
Direct labor hours per
0.70
0.84
1.02
unit
Transcribed Image Text:Production Departments Small Glove Medium Glove Large Glove Pattern Department 0.20 0.24 0.30 Cut and Sew Department 0.50 0.60 0.72 Direct labor hours per 0.70 0.84 1.02 unit
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Cost allocation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education