Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and...

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Accounting

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:

1

Assembly Department

$186,000.00

2

Test and Pack Department

120,000.00

3

Total

$306,000.00

The direct labor information for the production of 7,500 units of each product is as follows:

Department
Assembly Test and Pack
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.

Required:
Complete the Multiple-Department Overhead Tables for blenders and toaster ovens.
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.*

* If required, round all per-unit answers to the nearest cent.

Complete the Multiple-Department Overhead Table for blenders.
a. Determine the two production department factory overhead rates. Enter these rates in the Activity Rate column.*
b. Determine the total factory overhead and the factory overhead per unit allocated to blenders product.*
* If required, round all per-unit answers to the nearest cent.
Blenders
Activity Allocation-
Base Activity Activity
Usage X Rate = Cost
Assembly Department
dlh
/dlh
Test and Pack Department
dlh
/dlh
Total
Units
Factory overhead cost per unit

Complete the Multiple-Department Overhead Table for toaster ovens.
a. Determine the two production department factory overhead rates. Enter these rates in the Activity Rate column.*
b. Determine the total factory overhead and the factory overhead per unit allocated to toaster ovens product.*
* If required, round all per-unit answers to the nearest cent.
Toaster Ovens
Activity Allocation-
Base Activity Activity
Usage X Rate = Cost
Assembly Department
dlh
/dlh
Test and Pack Department
dlh
/dlh
Total
Units
Factory overhead cost per unit

Answer & Explanation Solved by verified expert
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