Multiple Production Department Factory Overhead Rate Method Four Finger Appliance Company manufactures small kitchen appliances....
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Accounting
Multiple Production Department Factory Overhead Rate Method
Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Four Finger Appliance presently uses the multiple production department factory overhead rate method. The factory overhead is as follows:
Assembly Department
$896,000
Test and Pack Department
608,000
Total
$1,504,000
The direct labor information for the production of 5,700 units of each product is as follows:
Assembly Department
Test and Pack Department
Blender
4,000
dlh
12,000
dlh
Toaster oven
12,000
4,000
Total
16,000
dlh
16,000
dlh
Four Finger Appliance used direct labor hours to allocate production department factory overhead to products.
If required, round all per unit answers to the nearest cent.
a. Determine the two production department factory overhead rates.
Assembly Department
$ per direct labor hour
Test and Pack Department
$ per direct labor hour
b. Determine the total factory overhead and the factory overhead per unit allocated to each product.
Product
Total Factory Overhead
Factory Overhead Per Unit
Blender
$
$
Toaster Oven
$
$
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