Business, 15.02.2021 20:20, brooklym2940
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:
Department
Assembly Test and Pack
Department Blender 750 dlh 2,250 dlh
Toaster oven 2,250 750
Total 3,000 dlh 3,000 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.
b. Determine the total factory overhead and the factory overhead per unit allocated to each product.
Answers: 2
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