Multiple Production Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is budgeted for the year at $538,500, divided into two departments: Fabrication, $388,500, and Assembly, $150,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require four direct labor hours in Fabrication and two direct labor hours in Assembly. The bass boats require three direct labor hours in Fabrication and two direct labor hours in Assembly. Each product is budgeted for 3,000 units of production for the year. When required, round all per unit answers to the nearest cent. a. Determine the total number of budgeted direct labor hours for the year in each department. 21,000 direct labor hours 12,000 direct labor hours b. Determine the departmental factory overhead rates for both departments. 18.50 per dlh 12.50 per dih c. Determine the factory overhead allocated per unit for each product using the department factory overhead allocation rates. Fabrication Assembly Fabrication Assembly Speedboat: Bass boat: per unit 63. per unit
Multiple Production Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is budgeted for the year at $538,500, divided into two departments: Fabrication, $388,500, and Assembly, $150,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require four direct labor hours in Fabrication and two direct labor hours in Assembly. The bass boats require three direct labor hours in Fabrication and two direct labor hours in Assembly. Each product is budgeted for 3,000 units of production for the year. When required, round all per unit answers to the nearest cent. a. Determine the total number of budgeted direct labor hours for the year in each department. 21,000 direct labor hours 12,000 direct labor hours b. Determine the departmental factory overhead rates for both departments. 18.50 per dlh 12.50 per dih c. Determine the factory overhead allocated per unit for each product using the department factory overhead allocation rates. Fabrication Assembly Fabrication Assembly Speedboat: Bass boat: per unit 63. per unit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Multiple Production Department Factory Overhead Rates
The total factory overhead for Bardot Marine Company is budgeted for the year at $538,500, divided into two departments: Fabrication, $388,500, and Assembly,
$150,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require four direct labor hours in Fabrication and two direct labor
hours in Assembly. The bass boats require three direct labor hours in Fabrication and two direct labor hours in Assembly. Each product is budgeted for 3,000 units of
production for the year.
When required, round all per unit answers to the nearest cent.
a. Determine the total number of budgeted direct labor hours for the year in each department.
21,000 direct labor hours
12,000 direct labor hours
b. Determine the departmental factory overhead rates for both departments.
18.50
Fabrication
Assembly
Fabrication
Assembly
Bass boat:
c. Determine the factory overhead allocated per unit for each product using the department factory overhead allocation rates.
Speedboat:
$
12.50
$
per dlh
per dlh
per unit
63. per unit
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