Financial and Managerial Accounting: E11-14 Gourmet Appliance Company manufactures small kitchen

Reminder: There are other versions of the same problem with amounts and other information that have been changed. Please make sure you compare your homework thoroughly with the tutorial details to ensure they are the same. DO NOT JUST COPY AND PASTE THE ANSWERS!!! Format of solution is the same way so please make sure you understand the tutorial contents.

Financial and Managerial Accounting
E11-14 Multiple production department factory overhead rate method
Gourmet Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Gourmet Appliance presently uses the multiple production department factory overhead rate method. The factory overhead is as follows:
Assembly Department 108,000
Test and Pack Department 70,000
Total 178,000

The direct labor information for the production of 5,000 units of each product is as follows:
Assembly Department Test and Pack Department
Blender 500 DLH 1,500 DLH
Toaster oven 1,500 500
Total 2,000 DLH 2,000 DLH
Gourmet Appliance used direct labor hours to allocate production department factory overhead to products.

If required, round all per unit answers to the nearest cent.
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.
Powered by