Question

Single Plantwide Factory Overhead Rate

The total factory overhead for Bardot Marine Company is budgeted for the year at $1,100,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboat and bass boat each require five direct labor hours for manufacture. Each product is budgeted for 8,000 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.
____________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_____________	$ per unit
Bass boat______________	$ per unit

Answer 1

solution

given data,

The Bardot Marine Company is budgeted for the year at $1,100,000.

the two types of boats manufactured by this company they are  speedboats and bass boats. The speedboat and bass boat each require five direct labor hours for manufacture.

Each product is budgeted for 8,000 units of production for the year.

section A.

since 8,000 units have been budgeted to be manufactured for both the products,total units produced would be 16,000(8,000*2)

each unit requires 5 direct labor hours to be manufactured .

the total budget of direct labor hour=16,000*5 per unit =80,000 hours

section B.

total factory budget overhead=$1,100,000

total budget direct labor hour=80,000 hours

hence the factory overhead rate is$1,100,000/80,000 DLH =$13.75 per (direct labor hour)

section C.

the speedboats and bassboats each require 5 DLH (direct labor hour),factory overhead for both the products is the same .

calculation is;

factory overhead per unit =DLH (direct labor hour )per unit X factory overhead per direct labor hour

=5 direct labor hour *$13.75

=$68.75 per unit

bass boat and speed boat factory overhead rate is $68.75 per unit