Performance Gloves, Inc. produces three sizes of sports gloves: small, medium, and large. A glove pattern is first stenciled onto leather in the Pattern Department. The stenciled patterns are then sent to the Cut and Sew Department, where the glove is cut and sewed together. Performance Gloves uses the multiple production department factory overhead rate method of allocating factory overhead costs. Its factory overhead costs were budgeted as follows:
Pattern Department overhead$129,600 Cut and Sew Department overhead220,800 Total$350,400
The direct labor estimated for each production department was as follows:
Pattern Department1,800direct labor hoursCut and Sew Department2,300 Total4,100direct labor hours
Direct labor hours are used to allocate the production department overhead to the products. The direct labor hours per unit for each product for each production department were obtained from the engineering records as follows:
Production DepartmentsSmall GloveMedium GloveLarge Glove
Pattern Department0.04 0.05 0.06 Cut and Sew Department0.07 0.09 0.11 Direct labor hours per unit0.11 0.14 0.17
If required, round all per unit answers to the nearest cent.
Determine the two
Pattern Department$per dlhCut and Sew Department$per dlh
Use the two production department factory overhead rates to determine the factory overhead per unit for each product.
Small glove$ per unitMedium glove$ per unitLarge glove$ per unit