In: Accounting

# Single Plantwide Factory Overhead Rate The total factory overhead for Bardot Marine Company is budgeted for...

The total factory overhead for Bardot Marine Company is budgeted for the year at $1,305,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboat and bass boat each require six direct labor hours for manufacture. Each product is budgeted for 7,500 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. direct labor hours b. Determine the single plantwide factory overhead rate. per dlh c. Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate.  Speedboat Bass boat Hercules Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication and Assembly production departments. In addition to production activities, several other activities are required to produce the two products. These activities and their associated activity rates are as follows:  Activity Activity Rate Fabrication$21 per machine hour Assembly $16 per direct labor hour Setup$45 per setup Inspecting $25 per inspection Production scheduling$17 per production order Purchasing $14 per purchase order The activity-base usage quantities and units produced for each product were as follows:  Activity Base Elliptical Machines Treadmill Machine hours 1,729 1,020 Direct labor hours 440 172 Setups 59 18 Inspections 745 447 Production orders 71 14 Purchase orders 175 107 Units produced 293 196 Use the activity rate and usage information to determine the total activity cost and activity cost per unit for each product. If required, round the per unit answers to the nearest cent. ## Solutions ##### Expert Solution Question 1 ) a)Total Budgeted direct labor hours :  Hours per unit * Number of units = Total hours required Speedboats 6 7500 45000 Bass boats 6 7500 45000 Total budgeted direct labor hours 90000 b) Plantwide overhead rate =Estimated overhead /estimated DLH = 1305000 /90000 =$ 14.5 PER dlh

c)

 Hours per unit * Overhead rate per hour = Overhead allocated per unit Speedboats 6 14.5 87 Bass boats 6 14.5 87

Question 2)

 Elliptical Machines (Activity rate*Activity usage) [i] Treadmill (Activity rate*Activity usage) [ii] Total activity cost [i+ii] Fabrication 21* 1729=36309 21*1020=21420 57729 Assembly 16*440= 7040 16*172= 2752 9792 set up 45*59=2655 45*18= 810 3465 Inspecting 25*745=18625 25*447=11175 29800 Production scheduling 17*71=1207 17*14=238 1445 purchasing 14*175=2450 14*107=1498 3948 Total 68286 37893 106179 Number of units 293 196 activity cost per unit 68286/293= 233.06 193.33

Total activity cost = 106179