The Campers Edge Factory produces two products — canopies and tents. It has two separate departments — Cutting and Sewing. The factory overhead budget is 5350,000 for the Cutting Department and $400,000 for the Sewing Department. Each canopy requires 2 hours of cutting and 1 hour of sewing. Each tent requires 1 hour of cutting and 6 hours of sewing. The budget estimates that 20,000 canopies and 10,000 tents will be manufactured during the year.
a. Determine the total number of budgeted direct labor hours for the year in each department.
Cutting Direct labor hours
Sewing Direct labor hours
b. Determine the departmental factory overhead rates for both departments. Round your answers to two decimal places, if necessary.
Cutting
Sewing
c. Determine the factory overhead allocated per unit of each product using the department factory overhead allocation rates using direct labor hours as the base. Round your answers to two decimal places, it necessary.
Tot. FOH per canopy
Tot. FOH per tent
