The total factory overhead for Bardot Marine Company is budgeted for the year at $1,027,000, divided into two departments: Fabrication, $526,500, and Assembly, $500,500. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require one direct labor hour in Fabrication and three direct labor hours in Assembly. The bass boats require two direct labor hours in Fabrication and four direct labor hours in Assembly. Each product is budgeted for 6,500 units of production for the year. a. Determine the total number of budgeted direct labor hours for the year in each department. b. Determine the departmental factory overhead rates for both departments. c. Determine the factory overhead allocated per unit for each product using the department factory overhead allocation rates.
The total factory overhead for Bardot Marine Company is budgeted for the year at $1,027,000, divided into two departments: Fabrication, $526,500, and Assembly, $500,500. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require one direct labor hour in Fabrication and three direct labor hours in Assembly. The bass boats require two direct labor hours in Fabrication and four direct labor hours in Assembly. Each product is budgeted for 6,500 units of production for the year. a. Determine the total number of budgeted direct labor hours for the year in each department. b. Determine the departmental factory overhead rates for both departments. c. Determine the factory overhead allocated per unit for each product using the department factory overhead allocation rates.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...
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