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Sportway Inc. produces high-quality tennis racquets and golf clubs using a patented forming process and high-quality hand-finishing. Products move…

Sportway Inc. produces high-quality tennis racquets and golf clubs using a patented forming process and high-quality hand-finishing. Products move through two production departments: Forming and Finishing. The company uses departmental overhead rates to allocate overhead costs. Overhead is allocated based on machine-hours in Forming and direct labour cost in Finishing. Information related to estimated volumes and denominator values for the coming year are provided below:

 Tennis RacquetsGolf Clubs  Annual production and sales 5,200  8,300   Direct materials per unit$4.70 $3.60   Direct labour cost per unit:        Forming Department$10.00 $4.50   Finishing Department$4.50 $6.00   Machine hours per unit:        Forming Department 0.75  0.25   Finishing Department 0.25  0.50  

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In addition, the firm budgets manufacturing overhead at $55,000 in the Forming Department and $47,000 in the Finishing Department.

Required:1.Determine the overhead application rate for each department. (Round your answers to 2 decimal places.)

2.Determine the total cost per unit of tennis racquets and golf clubs. (Round your answers to 2 decimal places.)

 

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