Problem: The Camp Gear Factory produces two products - canopies and tents. It has two separate departments - cutting and sewing. The budget for the cutting department is $350,000 and $400,000 for the sewing department. Each canopy will require 2 hours of cutting and 1 hour of sewing. Each tent will require 1 hour of cutting and 6 hours of sewing. The budget estimates that 20,000 canopies and 10,000 tents will need to be manufactured for the year.
Determine:
(a) The total number of budgeted direct labor hours for the year in each department
Cutting: $ __________
Sewing: $ __________
(b) The departmental factory overhead rates for both departments
Cutting: $ __________
Sewing $ __________
(c) The factory overhead allocated per unit each product using the department factory overhead allocation rates using direct labor hours as the base
Canopy:
Cutting: $ __________
Sewing: $ __________
Tot. FOH per
canopy
$ __________
Tent:
Cutting: $ __________
Sewing: $ __________
Tot. FOH per
canopy