Please answer # Exercise 4-6 (Algo) Computing Departmental Overhead Rates LO P2**Company Overview:**Hydro Sports budgets an overhead cost of $581,000 for the year. From this amount, $357,000 is traceable to the Assembly department, and $224,000 to the Finishing department. The company manufactures two types of jet skis: standard and deluxe. **Direct Labor Hours:**- **Standard Model:** - Assembly: 7 hours - Finishing: 1 hour- **Deluxe Model:** - Assembly: 10 hours - Finishing: 3 hours**Production Budget:**- 140 units of the standard model- 140 units of the deluxe model## Requirements### 1. Compute each department’s total number of budgeted direct labor hours for the year.#### Table Explanation:The table below breaks down the direct labor hours (DLHs) allocated per unit, along with the total hours for both the Assembly and Finishing departments:| Model | Number of Units | Assembly DLHs per Unit | Assembly Total Hours | Finishing DLHs per Unit | Finishing Total Hours ||----------|-----------------|------------------------|----------------------|-------------------------|-----------------------|| Standard | 140 | 7 | 980 | 1 | 140 || Deluxe | 140 | 10 | 1,400 | 3 | 420 || **Totals** | **560** | | **2,380** | | **560** |### 2. Compute departmental overhead rates for each department using direct labor hours for that department.#### Assembly Department Computation:- Compute the Departmental Overhead Rate by dividing the allocated overhead cost by the total direct labor hours.#### Finishing Department Computation:- Similarly, compute the Departmental Overhead Rate using the total direct labor hours.### 3. Compute overhead cost per unit for each model using departmental overhead rates.Calculate the overhead cost on a per-unit basis for both standard and deluxe models, considering the actual direct labor hours used in Assembly and Finishing.#### Table for Overhead Cost per Unit:This will be used to allocate the computed overhead costs to the standard and deluxe models based on actual usage.- **Standard Model Actual Hours:** - Assembly: 7

Department overhead rate is the rate used to allocate manufacturing overhead cost to cost object. It…

Exercise 4-6 (Algo) Computing departmental overhead rates LO P2 Hydro Sports budgets overhead cost of $581,000 for the year; of this amount, $357,000 is traceable to the Assembly department and $224,000 is traceable to the Finishing department. The company manufactures two types of jet skis: standard and deluxe. Budgeted direct labor hours for the standard model are 7 in Assembly and 1 in Finishing. Budgeted direct labor hours for the deluxe model are 10 in Assembly and 3 in Finishing. The company budgets production of 140 units of the standard model and 140 units of the deluxe model for the year. 1. Compute each department's total number of budgeted direct labor hours for the year. 2. Compute departmental overhead rates for each department using direct labor hours for that department. 3. Compute overhead cost per unit for each model using departmental overhead rates. Actual direct labor hours for the standard model are 7 in Assembly and 1 in Finishing. Actual direct labor hours for the deluxe model are 10 in Assembly and 3 in Finishing. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Standard Deluxe Totals Compute each department's total number of budgeted direct labor hours for the year. Number of Units Required 3 140✔ 140 Assembly Department DLHS per Unit Required 1 Required 2 X Answer is not complete. 7✔ 10✔ < Required 1 Required 2 Required 3 Total Hours 980 1,400 2,380 Required 1 Required 3 Finishing Department DLHs per Unit 1✓ 3✔ Total Hours 140 420 560 Required 2 > Compute departmental overhead rates for each department using direct labor hours for that department. Compute a departmental overhead rate for the Assembly department. Departmental OH rate Compute a departmental overhead rate for the Finishing department. < Required 1 Departmental OH rate Required 3 > Compute overhead cost per unit for each model using departmental overhead rates. Actual direct labor hours for the standard model are 7 in Assembly and 1 in Finishing. Actual direct labor hours for the deluxe model are 10 in Assembly and 3 in Finishing.