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    Camp Gear Factory Produces Two Products - Canopies and Tents

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    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.

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    https://brainmass.com/business/accounting/camp-gear-factory-produces-products-canopies-tents-241880

    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

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