The Sawtooth Leather Company manufactures leather handbags and moccasins.For simplicity,the company has decided to use a single plantwide factory overhead rate method to allocate factory overhead.Calculate the amount of factory overhead to be allocated to each unit using direct labor hours.
Handbags = 60,000 units,2 hours of direct labor

Moccasins= 40,000 units,3 hours of direct labor

Total budgeted factory overhead cost = $360,000

Question

The Sawtooth Leather Company manufactures leather handbags and moccasins.For simplicity,the company has decided to use a single plantwide factory overhead rate method to allocate factory overhead.Calculate the amount of factory overhead to be allocated to each unit using direct labor hours.
Handbags = 60,000 units,2 hours of direct labor
​
Moccasins= 40,000 units,3 hours of direct labor
​
Total budgeted factory overhead cost = $360,000

Quizplus · Accepted Answer

The Answer of The Sawtooth Leather Company manufactures leather handbags and moccasins.For simplicity,the company has decided to use a single plantwide factory overhead rate method to allocate factory overhead.Calculate the amount of factory overhead to be allocated to each unit using direct labor hours.
Handbags = 60,000 units,2 hours of direct labor
​
Moccasins= 40,000 units,3 hours of direct labor
​
Total budgeted factory overhead cost = $360,000

The Sawtooth Leather Company Manufactures Leather Handbags and Moccasins