Calculate the amount of factory overhead to be allocated

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Reference no: EM132502568

The Sawtooth Leather Company manufactures leather handbags and moccasins. For simplicity, the company has decided to use a single plantwide factory overhead rate method to allocate factory overhead.

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

Question 1: Calculate the amount of factory overhead to be allocated to each unit using direct labor hours. Round your answers to two decimal places, if necessary.

Handbags:$ per unit

Moccasins:$ per unit

Reference no: EM132502568

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