Multiple production department factory overhead rate methodFour Finger Appliance Company manufactures small kitchen appliances.The product line consists of blenders and toaster ovens. Four FingerAppliance presently uses the multiple production department factoryoverhead rate method. The factory overhead is as follows: Assembly Department $186,000 Test and Pack Department 120,000 Total $306,000 The direct labor information for the production of 7,500 units of each product is as follows: AssemblyDepartment Test and PackDepartment Blender 750 dih 2,250 dlh Toaster oven 2,250 750 Total 3,000 dih 3,000 dlh Four Finger Appliance used direct labor hours to allocate productiondepartment factory overhead to products.Determine the two production department factory overhead rates.Determine the total factory overhead and the factory overhead per unitallocated to each product.
Multiple production department factory overhead rate methodFour Finger Appliance Company manufactures small kitchen appliances.The product line consists of blenders and toaster ovens. Four FingerAppliance presently uses the multiple production department factoryoverhead rate method. The factory overhead is as follows: Assembly Department $186,000 Test and Pack Department 120,000 Total $306,000 The direct labor information for the production of 7,500 units of each product is as follows: AssemblyDepartment Test and PackDepartment Blender 750 dih 2,250 dlh Toaster oven 2,250 750 Total 3,000 dih 3,000 dlh Four Finger Appliance used direct labor hours to allocate productiondepartment factory overhead to products.Determine the two production department factory overhead rates.Determine the total factory overhead and the factory overhead per unitallocated to each product.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 14E
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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 | $186,000 |
| Test and Pack Department | 120,000 |
| Total | $306,000 |
The direct labor information for the production of 7,500 units of each product is as follows:
| Assembly Department |
Test and Pack Department |
|
| Blender | 750 dih | 2,250 dlh |
| Toaster oven | 2,250 | 750 |
| Total | 3,000 dih | 3,000 dlh |
Four Finger Appliance used direct labor hours to allocate production
department factory overhead to products.
Determine the two production department factory overhead rates.
Determine the total factory overhead and the factory overhead per unit
allocated to each product.
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