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Anonymous
timer Asked: Apr 22nd, 2014
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Question Description

The Anazi Leather Company manufactures leather handbags (H) and moccasins (M). The company has been using the factory overhead rate method but has decided to evaluate the multiple production department factory overhead rate to allocate factory overhead. The factory overhead estimated per unit together with direct materials and direct labor will help determine selling prices.

Handbags = 60,000 units, 3 hours of direct labor

Moccasins= 40,000 units, 2 hours of direct labor

Total Budgeted factory overhead cost = $360,000

The company has two different production departments: Cutting and Sewing. The cutting department has a factory overhead budget of $80,000. Each unit will require 1 direct labor hour or a total of 100,000 direct labor hours.

The Sewing Department estimates factory overhead in the amount of $280,000. Handbags require 2 hours of sewing time and Moccasins require 1 hour for a total of 160,000 labor hours.

Calculate the amount of factory overhead to be allocated to each unit using direct labor hours.

Moccasins$
Handbags$

Tutor Answer

khakaan
School: University of Maryland

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Anonymous
Tutor went the extra mile to help me with this essay. Citations were a bit shaky but I appreciated how well he handled APA styles and how ok he was to change them even though I didnt specify. Got a B+ which is believable and acceptable.

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