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partment Factory Overhead Rate Method Handy Leather, Inc, produces three stres of sports gloves: small, medium and large. A glove pattern is first stendled onto leather in the Patter Department. The stenciled patterns are then sent to the Cut and Sew Department, where the glove is cut and sewed together. Handy Leather 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 $147,400 Cut and sew Department overhead 249,200 Total $396,600 The direct labor estimated for each production department was as follows: Pattern Department 2,200 direct labor hours Cut and sew Department 2.800 Total 5.000 direct labor hours Direct her house wed to allocate the production department overhead to the products. The direct labor hours per unit for each productor each production diartment were obtained from the engineering records as follows Production Departments Small Glove Medium Glove Large Glove Pattern Department 0.06 0.07 Cut and sew Department 0.08 0.10 0.12 Direct labor hours per unit 0.13 0.16 0.19 It required, round all per unit answers to the nearest cent. a. Determine the two production desartment factory overhead rates Pattern Department 0.05 peroth Pattern Department 2,200 direct labor hours Cut and Sew Department 2,800 Total 5,000 direct 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 Departments Small Glove Medium Glove Large Glove Pattern Department 0.05 0.06 0.02 Cut and Sew Department 0.08 0.10 0.12 Direct labor hours per unit 0.13 0.16 0.19 If required, round all per unit answers to the nearest cent. a. Determine the two production department factory overhead rates. Pattern Department per di Cut and Sew Department per oh b. Use the two production department factory overhead rates to determine the factory overhead per unit for each product. Small love por unit Medium glove per unit Large glove per unit

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