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 $1,100,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboat and bass boat each require five direct labor hours for manufacture. Each product is budgeted for 8,000 units of production for the year. When required, round all per unit answers to the nearest cent. a. Determine the total number of budgeted direct labor hours for the year. ____________direct labor hours b. Determine the single plantwide factory overhead rate. ____________$ 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

## Solutions

##### Expert Solution

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

##### Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for...
Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,112,000, divided into four activities: fabrication,$576,000; assembly, $224,000; setup,$168,000; and inspection, \$144,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The activity-base usage quantities for each product by each activity are as follows: Fabrication Assembly Setup Inspection Speedboat 8,000 dlh 24,000 dlh 58 setups 100 inspections Bass boat 24,000 8,000 422 700 32,000 dlh 32,000 dlh...