50.1K

Verified Solution

Link Copied!

Sportway Inc. produces high-quality tennis racquets and golf clubs using a patented forming process and high-quality hand-finishing. Products move through two production departments: Forming and Finishing. The company uses departmental overhead rates to allocate overhead costs. Overhead is allocated based on machine-hours in Forming and direct labour cost in Finishing. Information related to costs for last year is provided below: Annual production and sales (units) Direct materials cost per unit Direct labour cost per unit: Forming Department Finishing Department Machine-hours per unit: Forming Department Finishing Department Answer is complete but not entirely correct. Tennis Golf Racquets Clubs 6,500 10,250 $ 4.80 $ 3.90 $ 2.13 Xper MH Forming Finishing $ 0.43 per DLS $ 4.00 $ 3.50 $7.50 $ 9.00 0.25 0.00 In addition, the firm budgets manufacturing overhead at $58,250 in the Forming Department and $61,500 in the Finishing Department. Required: 1. Determine the overhead application rate for each department. (Round your answers to 2 decimal places.) 0.25 0.50

Sportway Inc. produces high-quality tennis racquets and golf clubs using a patented forming process and high-quality hand-finishing. Products move through two production departments: Forming and Finishing. The company uses departmental overhead rates to allocate overhead costs. Overhead is allocated based on machine-hours in Forming and direct labour cost in Finishing. Information related to costs for last year is provided below: In addition, the firm budgets manufacturing overhead at $58,250 in the Forming Department and $61,500 in the Finishing Department. Required: 1. Determine the overhead application rate for each department. (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Answer is complete but not entirely correct. 2. Determine the total cost per unit of tennis racquets and golf clubs. (Round your intermediate calculations and final answers to 2 decimal places.) Answer is complete but not entirely correct

Answer & Explanation Solved by verified expert

See Answer