The Anazi Leather Company manufactures leather handbags (H) and moccasins (M).

The Anazi Leather Company manufactures leather handbags (H) and moccasins (M). The company has been using the factory overhead rate method but has decided to
evaluate the multiple production department factory overhead rate to allocate factory overhead. The factory overhead estimated per unit together with direct
materials and direct labor will help determine selling prices.

Handbags = 60000 units 3 hours of direct labor

Moccasins= 40000 units 2 hours of direct labor

Total Budgeted factory overhead cost = $360000

The company has two different production departments: Cutting and Sewing. The cutting department has a factory overhead budget of $80000. Each unit will
require 1 direct labor hour or a total of 100000 direct labor hours.

The Sewing Department estimates factory overhead in the amount of $280000. Handbags require 2 hours of sewing time and Moccasins require 1 hour for a total of
160000 labor hours.

Calculate the amount of factory overhead to be allocated to each unit using direct labor hours.