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#### Single Plantwide and Multiple Production Department Factory Overhead Rate Methods and Product Cost Distortion Pineapple Motor Company manufactures two types of specialty electric motors, a commercial motor and a residential motor, through two production departments, Assembly and Testing

###### Accounting

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 2 Test and Pack Department \$231,700.00 150,420.00 \$382,120.00 3 Total The direct labor information for the production of 7,945 units of each product is as follows: Department Assembly Test and Pack Blender 840 dih 2,525 dih Toaster oven 2.470 745 Total 3,310 dih 3,270 dih
Blenders Allocation- Activity Base Activity Activity Usage ? Rate Cost Assembly Department 840 dlh \$70.00 Idilih \$58,800 Test and Pack Department 2,525 dlh \$46.00 Idih 116,150 Total \$174,950 Units Factory overhead cost per unit
Toaster Ovens Allocation- Activity Base Activity Activity Usage ? Rate = Cost Assembly Department dih Vdih \$ \$ \$ Test and Pack Department dih Vdih Total \$ Units Factory overhead cost per unit \$
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 2 Test and Pack Department \$268,294.00 199,489.00 \$467,783.00 3 Total 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
Complete the Activity Table for blenders. a. Determine the three activity rates (assembly, test and pack, and setup). Enter these rates in the Activity Rate column." b. Determine the total factory overhead and factory overhead per unit allocated to blenders product using the activity rates in (a)." "If required, round all per-unit answers to the nearest cent. Blender Activity Activity Base Activity Activity Usage ? Rate Cost Assembly activity 665 dih \$59 Idih \$39,235 Test and pack activity 1,960 dlh \$42 idth 82,320 Setup activity 121 setups \$979 Isetup 118,459 Total \$240,014 Units 8,365 Factory overhead cost per unit \$28.69
Toaster Oven Activity- Activity Base Activity Activity Usage ? Rate Cost Assembly activity 2,530 dlh \$ Idih \$ Test and pack activity 890 dlh? \$ Idih Setup activity setups \$ Isetup Total \$ Units Factory overhead cost per unit \$

## 4.89 USD

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