Hydro Sports budgets overhead cost of $540,000 for the year; of this amount, $315,000 is traceable to the Assembly department and $225,000 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 5 in Assembly and 2 in Finishing. Budgeted direct labor hours for the deluxe model are 10 in Assembly and 4 in Finishing. The company budgets production of 150 units of the standard model and 150 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 5 in Assembly and 2 in Finishing. Actual direct labor hours for the deluxe model are 10 in Assembly and 4 in Finishing. Complete this question by entering your answers in the tabs below

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Chapter1: Financial Statements And Business Decisions
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Please refer to the pictures for info and questions 1 and 2. See below for question 3 format.

 
 
Department Departmental Overhead Rate Standard Deluxe
Hours per Unit Overhead Allocated Hours per Unit Overhead Allocated
Assembly            
Finishing            
Totals       $0   $0
 
  •  
Required 1 Required 2 Required 3
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.
Departmental OH rate
< Required 1
Required 3 >
Transcribed Image Text:Required 1 Required 2 Required 3 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. Departmental OH rate < Required 1 Required 3 >
Hydro Sports budgets overhead cost of $540,000 for the year; of this amount, $315,000 is traceable to the Assembly department and
$225,000 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 5 in Assembly and 2 in Finishing. Budgeted direct labor hours for the deluxe model are
10 in Assembly and 4 in Finishing. The company budgets production of 150 units of the standard model and 150 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 5 in Assembly and 2 in Finishing. Actual direct labor hours for the deluxe model are 10 in Assembly and 4 in Finishing.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Compute each department's total number of budgeted direct labor hours for the year.
Assembly Department
Finishing Department
Standard
Deluxe
Totals
Required 3
Number of
Units
DLHs per Unit
Total Hours
< Required 1
0
DLHs per Unit
Total Hours
Required 2 >
Transcribed Image Text:Hydro Sports budgets overhead cost of $540,000 for the year; of this amount, $315,000 is traceable to the Assembly department and $225,000 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 5 in Assembly and 2 in Finishing. Budgeted direct labor hours for the deluxe model are 10 in Assembly and 4 in Finishing. The company budgets production of 150 units of the standard model and 150 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 5 in Assembly and 2 in Finishing. Actual direct labor hours for the deluxe model are 10 in Assembly and 4 in Finishing. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute each department's total number of budgeted direct labor hours for the year. Assembly Department Finishing Department Standard Deluxe Totals Required 3 Number of Units DLHs per Unit Total Hours < Required 1 0 DLHs per Unit Total Hours Required 2 >
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