Sportway Inc. produces high-quality tennis racquets and golf clubs using a patented forming process and high-quality hand-finishing. Products move through two production departments: Forming and Finishing. The company uses departmental overhead rates to allocate overhead costs. Overhead is allocated based on machine-hours in Forming and direct labour cost in Finishing. Information related to costs for last year is provided below: Annual production and sales (units) Direct materials cost per unit Direct labour cost per unit: Forming Department Finishing Department. Machine-hours per unit: Forming Department Finishing Department Forming Finishing per MH per DLS Total cost per unit Tennis Golf Racquets Clubs 6,500 10,250 $4.80 $ 3.90 In addition, the firm budgets manufacturing overhead at $58,250 in the Forming Department and $61,500 in the Finishing Department. Required: 1. Determine the overhead application rate for each department. (Round your answers to 2 decimal places.) $4.00 $ 3.50 $7.50 $9.00 Tennis Racquets Golf Clubs 0.25 0.00 0.25 0.50 2. Determine the total cost per unit of tennis racquets and golf clubs. (Round your intermediate calculations and final answers to 2 decimal places.)

Sportway Inc. produces high-quality tennis racquets and golf clubs using a patented forming process and high-quality hand-finishing. Products move through two production departments: Forming and Finishing. The company uses departmental overhead rates to allocate overhead costs. Overhead is allocated based on machine-hours in Forming and direct labour cost in Finishing. Information related to costs for last year is provided below: Annual production and sales (units) Direct materials cost per unit Direct labour cost per unit: Forming Department Finishing Department. Machine-hours per unit: Forming Department Finishing Department Forming Finishing per MH per DLS Total cost per unit Tennis Golf Racquets Clubs 6,500 10,250 $4.80 $ 3.90 In addition, the firm budgets manufacturing overhead at $58,250 in the Forming Department and $61,500 in the Finishing Department. Required: 1. Determine the overhead application rate for each department. (Round your answers to 2 decimal places.) $4.00 $ 3.50 $7.50 $9.00 Tennis Racquets Golf Clubs 0.25 0.00 0.25 0.50 2. Determine the total cost per unit of tennis racquets and golf clubs. (Round your intermediate calculations and final answers to 2 decimal places.)

Name: Sportway Inc. produces high-quality tennis racquets and golf clubs us
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Description: Sportway Inc. produces high-quality tennis racquets and golf clubs using a patented forming process and high-quality hand-finishing.Products move through two production departments: Forming and Finishing. The company uses departmental overhead rates

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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