Can you please help me out with all of the questions within this problem? The part of this question I am having trouble with is…. a. Determine the two production department factory overhead rates. This is located at the bottom of this question I posted.
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 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. Performance Gloves 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 $102,900 Cut and Sew Department overhead 169,000 Total $271,900
The direct labor estimated for each production department was as follows: Pattern Department 2,100 direct labor hours Cut and Sew Department 2,600 Total 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: Production Departments Small Glove Medium Glove Large Glove Pattern Department 0.05 0.06 0.07 Cut and Sew Department 0.08 0.10 0.12 Direct labor hours per unit 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 $…BLANK …per dlh Cut and Sew Department $….BLANK per dlh