Calculate the amount of factory overhead to be allocated to

Reference no: EM13571993

The Sawtooth Leather Company manufactures leather handbags and moccasins. For simplicity reasons, they have decided to use the 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

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

Handbags: _____$ per unit
Moccasins: _____$ per unit

Reference no: EM13571993

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