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Multiple Production Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is budgeted for the year at $1,183,000, divided into two departments: Fabrication, $483,000, and Assembly, $700,000
Multiple Production Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is budgeted for the year at $1,183,000, divided into two departments: Fabrication, $483,000, and Assembly, $700,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require two direct labor hours in Fabrication and four direct labor hours in Assembly. The bass boats require one direct labor hour in Fabrication and four direct labor hours in Assembly. Each product is budgeted for 7,000 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
Expert Solution
| a | |||
| Fabrication | 21000 | direct labor hours | =7000*(2+1) |
| Assembly | 56000 | direct labor hours | =7000*(4+4) |
| b | |||
| Fabrication | 23.00 | per dlh | =483000/21000 |
| Assembly | 12.50 | per dlh | =700000/56000 |
| c | |||
| Speedboat | 96.00 | per unit | =(2*23)+(4*12.50) |
| Bassboat | 73.00 | per unit | =(1*23)+(4*12.50) |
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