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The total factory overhead for Bowden Marine Company is budgeted for the year at $593,000

Accounting Feb 23, 2021

The total factory overhead for Bowden Marine Company is budgeted for the year at $593,000. Bowden Marine manufactures two types of boats: speedboats and pontoon boats. The speedboat and pontoon boat each require 6 direct labor hours for manufacture. Each product is budgeted for 4,300 units of production for the year. 
What is the total number of budgeted direct labor hours for the year? 
0 49,800 0 43,000 0 51,600 (ID 37,500 
 

Expert Solution

 

Computation of Total number of budgeted direct labor hours for the year:

Total number of budgeted direct labor hours for the year:

Speedboats (4300 units * 6) = $25,800

Pontoon boats (4300 units * 6) = $25,800

Total number of budgeted direct labor hours for the year = $51,600

The correct option is 3rd "$51,600"

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