Camper's Edge Factory Produces Two Products: Canopies and Tents

question 93

Essay

Camper's Edge Factory produces two products: canopies and tents. The total factory overhead is budgeted at $750,000 for the year, divided between two departments: Cutting, $350,000, and Sewing, $400,000. Each canopy requires 2 direct labor hours in Cutting and 1 direct labor hour in Sewing. Each tent requires 1 direct labor hour in Cutting and 6 direct labor hours in Sewing. Production for the year is budgeted for 20,000 canopies and 10,000 tents. Determine the:
a. Total number of budgeted direct labor hours for the year in each department.
b. Departmental factory overhead rate for each department.
c. Factory overhead allocated per unit of each product, using the departmental factory overhead rates determined in (b).

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Definitions:

Instincts

Inherent inclinations toward a particular behavior that are often unlearned and present in many animals, including humans.

Social Disequilibrium

A state where there is an imbalance or disruption in the social fabric, often leading to conflicts and changes.

Manifest Function

The recognized and intended consequences of any social pattern, contributing to societal stability or function.

Latent Function

The unrecognized and unintended consequences of any social process, which may be beneficial, neutral, or harmful.