- Others @eShow Me How ? Multiple Production Department Factory Overhead Rate Me

Question

- Others @eShow Me How ? Multiple Production Department Factory Overhead Rate Method Performance Gloves, Inc produces three sizes of sports gloves: small, medium, and large. A glove pattern is first stenoled 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. Performance Gloves uses the muiltiple production department factory overhead rate method of alocating factory overhead costs. Its factory overhead costs were budgeted as follows Pattern Depertment overhead Cut and Sew Department overhead 105,600 176,000 281,600 Total The direct labor estimated for each production department was as follows Pattern Department Cut and Sew Department 1,600 direct labor hours 2,000 3,600 direct labor hours Total products. The direct labor hours per unit for each product for each production department Direct labor hours are used to allocate the production department overhead to the were obtained from the engineering records as follows: Production Departments Small Glove Medium Glove Large Glove Patern 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 0.07 0.09 0.15 PreviousNe Check My 0 8 O.

Explanation / Answer

Req a: Factory Oh rate per Labour hours: Total OH DLH OH rate per DLH (Total OH / DLH) Pattern Depertment 105600 1600 66.00 Cut and Sew department 176000 2000 88.00 Req b: Small Glove Medium Glove large Glove Pattern Deptt. DLH per unit 0.05 0.06 0.07 Cut and sew Deptt DLH per unit 0.07 0.09 0.11 Pattern deptt OH rate per DLH 66 66 66 Cut and Sew deptt OH rate per DLH 88 88 88 OH cost per unit Pattern 3.3 3.96 4.62 Cut and Sew 6.16 7.92 9.68 OH cost per unit 9.46 11.88 14.3

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