Spielman 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. Spielman 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 $121,800 200,200 $322,000 The direct labor estimated for each production department was as follows: Pattern Department Cut and Sew Department Total 2,100 direct labor hours 2,600 4,700 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: Small Glove Medium Glove Large Glove Production Departments Pattern Department Cut and Sew Department Direct labor hours per unit 0.05 0.06 0.07 0.08 0.10 0.12 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 $ Cut and Sew department per dlh 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 Large glove per unit per unit
Spielman 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. Spielman 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 $121,800 200,200 $322,000 The direct labor estimated for each production department was as follows: Pattern Department Cut and Sew Department Total 2,100 direct labor hours 2,600 4,700 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: Small Glove Medium Glove Large Glove Production Departments Pattern Department Cut and Sew Department Direct labor hours per unit 0.05 0.06 0.07 0.08 0.10 0.12 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 $ Cut and Sew department per dlh 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 Large glove per unit per unit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Spielman 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. Spielman 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
$121,800
200,200
$322,000
The direct labor estimated for each production department was as follows:
Pattern Department
Cut and Sew Department
Total
2,100 direct labor hours
2,600
4,700 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:
Small Glove Medium Glove Large Glove
Production Departments
Pattern Department
Cut and Sew Department
Direct labor hours per unit
0.05
0.06
0.07
0.08
0.10
0.12
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 $
Cut and Sew department
per dlh
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
Large glove
per unit
per unit
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