Cut and Sew Department overhead 200.500 $446,900 The direct labor estimated for each production department was as follo 2.600 direct labor hours 3,300 Total 5.900 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 Pattern Department Out and Sew Department Direct labor hours per unit If required, round all per unit answers to the nearest cent. a. Determine the the production department factory everhead Pattern Department Cut and Sew Department Small Glove Medium Clove 0.04 0.05 0.07 0.09 0.11 0.34 Large Clove 0.06 0.11 0.17

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 5E: Handy Leather, Inc., produces three sizes of sports gloves: small, medium, and large. A glove...
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Cut and Sew Department overhead
280,500
Total
$446,900
The direct labor estimated for each production department was as follows:
Pattern Department
2.600 direct labor hours
Cut and Sew Department
3,300
Total
5.900 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
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.
Small Glove Medium Glove
0.04
0.05
0.07
0.09
0.11
0.14
Large Glove
0.06
0.11
0.17
Pattern Department
per dh
per dik
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
Previous
Transcribed Image Text:Cut and Sew Department overhead 280,500 Total $446,900 The direct labor estimated for each production department was as follows: Pattern Department 2.600 direct labor hours Cut and Sew Department 3,300 Total 5.900 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 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. Small Glove Medium Glove 0.04 0.05 0.07 0.09 0.11 0.14 Large Glove 0.06 0.11 0.17 Pattern Department per dh per dik 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 Previous
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 stenciled patterns are then sent to
the Cut and Sew Department, where the glove is cut and seved together. Handy 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
$166,400
280,500
$446,900
Total
The direct labor estimated for each production department was as follows:
Pattern Department
2.600 direct laber hours
Cut and Sew Department
3.300
Total
5.900 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 follower
Production Departments
Pattern Department
Cut and Se 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.
per dih
Small Glove Medium Glove
0.04
0.05
0.07
0.09
0.11
0.34
Large Glove
0,06
divi
0.17
Pattern Department
Cut and Sew Department
b. Use the to production department factory overhead rates to determine the factory overhead per unit for each product.
Previous
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 stenciled patterns are then sent to the Cut and Sew Department, where the glove is cut and seved together. Handy 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 $166,400 280,500 $446,900 Total The direct labor estimated for each production department was as follows: Pattern Department 2.600 direct laber hours Cut and Sew Department 3.300 Total 5.900 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 follower Production Departments Pattern Department Cut and Se 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. per dih Small Glove Medium Glove 0.04 0.05 0.07 0.09 0.11 0.34 Large Glove 0,06 divi 0.17 Pattern Department Cut and Sew Department b. Use the to production department factory overhead rates to determine the factory overhead per unit for each product. Previous
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