The total factory overhead for Bardot Marine Company is budgeted for the year at $930,000, divided into two departments: Fabrication, $636,000, and Assembly, $294,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require three direct labor hours in Fabrication and four direct labor hours in Assembly. The bass boats require one direct labor hour in Fabrication and three direct labor hours in Assembly. Each product is budgeted for 6,000 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. Fabrication ______direct labor hours Assembly ______direct labor hours b. Determine the departmental factory overhead rates for both departments. Fabrication $ ____ per dlh Assembly $ ____ per dlh c. Determine the factory overhead allocated per unit for each product using the department factory overhead allocation rates. Speedboat: $ _____ per unit Bass boat: $_____per unit
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
The total factory
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.
| Fabrication | ______direct labor hours |
| Assembly | ______direct labor hours |
b. Determine the departmental factory overhead rates for both departments.
| Fabrication | $ ____ per dlh |
| Assembly | $ ____ per dlh |
c. Determine the factory overhead allocated per unit for each product using the department factory overhead allocation rates.
| Speedboat: | $ _____ per unit |
| Bass boat: | $_____per unit |
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