Answer:
(1) 50,000; 80,000
(2) $7 per hour; $5 per hour
(3) $19; $37
Explanation:
(1) Cutting
20,000 canopy × 2 hours of cutting
= 40,000 hours
10,000 tents × 1 hours of cutting
= 10,000 hours
Total hours = 40,000 + 10,000
= 50,000 hours
Sewing :
20,000 canopy × 1 hours of sewing
= 20000 hours
10,000 tents × 6 hours of sewing
= 60,000 hours
Total = 60,000 + 20,000
= 80,000 hours
(2.) Factory overhead :
Cutting = total cost ÷ total direct labor hours
= $350,000 ÷ 50,000 hours
= $7 per hour
Sewing = total cost ÷ total labor hours
= $400,000 ÷ 80,000 hours
= $5 per hours
(3.) Factory overhead rate per unit :
Canopy:
= (cutting hours used per canopy × Factory overhead rate per hour for cutting) + ( sewing hours per canopy × hours rate per sewing )
= (2 hours × $7) + (1 hours ×$5 )
= $19 per canopy
Tent:
= (per unit hours of cutting × rate per cutting hours) + (Hours used for sewing × rate per hour of sewing)
= (1 hours × $7) + (6 hours × $5 )
= $37 per tent
