The direct labor estimated for each production Pattern Department Cut and Sew Department 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 Medium Glove Large Glove 0.07 0.11 0.18 1,700 direct labor hours 2,100 3,800 direct labor hours 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. per dlh per dlh Check My Work tment was as follows: 0.05 0.07 0.12 per unit per unit 0.06 0.09 Pattern Department 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 Large glove 0.15 Previous Next

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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The direct labor estimated for each production
Pattern Department
Cut and Sew Department
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 Medium Glove
Large Glove
0.06
0.07
0.09
0.11
0.18
Check My Work
1,700 direct labor hours
2,100
3,800 direct labor hours
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
per dlh
per dlh
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
Large glove
Irtment was as follows:
0.05
0.07
0.12
per unit
per unit
0.15
Previous
Next
Transcribed Image Text:The direct labor estimated for each production Pattern Department Cut and Sew Department 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 Medium Glove Large Glove 0.06 0.07 0.09 0.11 0.18 Check My Work 1,700 direct labor hours 2,100 3,800 direct labor hours 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 per dlh per dlh 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 Large glove Irtment was as follows: 0.05 0.07 0.12 per unit per unit 0.15 Previous Next
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 sewed 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
Total
$102,000
168,000
$270,000
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 Large Glove.
0.05
0.06
0.07
0.09
0.12
0.15
Pattern Department
Cut and Sew Department
Direct labor hours per unit
If required, round all per unit answers to the nearest cent.
Determine the kunnendurkan datan
0.07
0.11
0.18
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 sewed 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 Total $102,000 168,000 $270,000 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 Large Glove. 0.05 0.06 0.07 0.09 0.12 0.15 Pattern Department Cut and Sew Department Direct labor hours per unit If required, round all per unit answers to the nearest cent. Determine the kunnendurkan datan 0.07 0.11 0.18
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