Question

Multiple Production Department Factory Overhead Rates

The total factory overhead for Bardot Marine Company is budgeted for the year at $966,000, divided into two departments: Fabrication, $768,000, and Assembly, $198,000. 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 four direct labor hours in Fabrication and four direct labor hours in Assembly. Each product is budgeted for 4,000 units of production for the year.

If 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

Answer 1