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The total factory overhead for Urban Styles, Inc , is budgeted for t

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The total factory overhead for Urban Styles, Inc., is
budgeted for the year at $225,000, divided into two
departments: Cutting, $72,000, and Sewing, $153,000.
Urban Styles manufactures two types of men\'s pants:
jeans and khakis. The jeans require 0.05 direct labor hour
in Cutting and 0.10 direct labor hour in Sewing. The khakis
require 0.10 direct labor hour in Cutting and 0.05 direct
labor hour in Sewing. Each product is budgeted for 15,000
units of production for the year.
a. Determine the total number of budgeted direct labor
hours for the year in each department.
b. Determine the departmental factory overhead rates for
both departments.
c. Determine the factory overhead allocated per unit for
each product using the department factory overhead
allocation rates.Cuttingdirect labor hoursSewingdirect
labor hours
Solution
2. Cutting department rate: Factory overhead of cutting/
Cutting direct labor hour
=72000/2250
=32
Sewing department rate: 153000/2250
=68
3. Jeans:

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The total factory overhead for Urban Styles, Inc., is budgeted for the year at $225,000, divided into two departments: Cutting, $72,000, and Sewing, $153,000. Urban Styles manufactures two types of men \'s pants: jeans and khakis. The jeans require 0.05 direct labor hour in Cutting and 0.10 direct labor hour in Sewing. The khakis require 0.10 direct labor hour in Cutting and 0.05 direct labor hour in Sewing. Each product is budgeted for 15,000 units of production for the year. a. Determine the total number of budgeted direct labor hours for the year in each department. b. Determine the departm ...
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