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Camp Gear Factory Produces Two Products - Canopies and Tents

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
$ __________
PAGE.

Solution Summary

The solution examines a camping gear factory which produces two products, canopies and tents. The money spent to produce each product is determined.

$2.19