Question

Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Four Finger Appliance presently uses the multiple production department factory overhead rate method. The factory overhead is as follows:

1	Assembly Department	$188,505.00
2	Test and Pack Department	119,700.00
3	Total	$308,205.00

The direct labor information for the production of 8,365 units of each product is as follows:

	Department
	Assembly	Test and Pack
Blender	665 dlh	1,960 dlh
Toaster oven	2,530	890
Total	3,195 dlh	2,850 dlh

Four Finger Appliance used direct labor hours to allocate production department factory overhead to products.

	Required:
	Complete the Multiple-Department Overhead Tables for blenders and toaster ovens. a. Determine the two production department factory overhead rates.* b. Determine the total factory overhead and the factory overhead per unit allocated to each product.* * If required, round all per-unit answers to the nearest cent.

Toaster Oven
Activity	Activity-
	Base		Activity		Activity
	Usage	X	Rate	=	Cost
Assembly activity	selector 1 dlh or setups		selector 2 /dlh or /setup
Test and pack activity	selector 3 dlh or setups		selector 4 /dlh or /setup
Setup activity	selector 5 dlh or setups		selector 6 /dlh or /setup
Total
÷ Units				÷
Factory overhead cost per unit

Blender
Activity	Activity-
	Base		Activity		Activity
	Usage	X	Rate	=	Cost
Assembly activity	selector 1 dlh setups		selector 2 /dlh /setup
Test and pack activity	selector 3 dlh setups		selector 4 /dlh /setup
Setup activity	selector 5 dlh setups		selector 6 /dlh /setup
Total
÷ Units				÷
Factory overhead cost per unit

Answer 1

	Department
	Assembly	Test and Pack	Total
Blender	665	1960	2625
Toaster Oven	2530	890	3420
Total	3195	2850	6045
Factory Overhead rate per direct labor hour =$308,205 / 6045 hours =$50.99 or $51
Allocation of Factory Overhead Cost for Blender
	Base Usage	Activity Rate	Activity Cost
Assembly Activity	665	$                                  51.00	$                      33,915.00
Test and Pack Activity	1960	$                                  51.00	$                      99,960.00
Total Factory Overhead Cost			$                   1,33,875.00
No. of units			8365	units
Factory Overhead Cost per unit($133,875/8365)			$                             16.00	per unit
Allocation of Factory Overhead Cost Cost for Toaster Oven
	Base Usage	Activity Rate	Activity Cost
Assembly Activity	2530	$                                  51.00	$                   1,29,030.00
Test and Pack Activity	890	$                                  51.00	$                      45,390.00
Total Factory Overhead Cost			$                   1,74,420.00
No. of units			8365	units
Factory Overhead Cost per unit($174,420/8365)			$                             20.85	per unit
Note:The format provided by you contains setup activity, but there is no info regarding that in the question and hence the same is ignored.