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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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