The Sawtooth Leather Company manufactures leather handbags and moccasins. For simplicity reasons, they have decided to use the 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

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The Answer of The Sawtooth Leather Company manufactures leather handbags and moccasins. For simplicity reasons, they have decided to use the 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