Multiple Production Department Factory Overhead Rates The total factory overhead
ID: 2396964 • Letter: M
Question
Multiple Production Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is budgeted for the year at $1,167,250, divided into two departments: Fabrication, $787,500, and Assembly, $379,750. 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 three direct labor hours in Fabrication and three direct labor hours in Assembly. Each product is budgeted for 7,000 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 in each department. Fabrication 35 X direct labor hours Assembly 49 X direct labor hours b. Determine the departmental factory overhead rates for both departments. Fabrication 18.75 x per dh Assembly 9.04 X per dih c. Determine the factory overhead allocated per unit for each product using the department factory overhead allocation rates Speedboat: 73.66 x per unit Bass boat: SC8337]X per unitExplanation / Answer
Information Given
Total Budgeted Overhead
11,67,250
Bifurcation
Fabrication
7,87,500
Assembly
3,79,750
11,67,250
Labour Hours
Total
Particulars
Speed Boats
Bass Boats
Fabrication
2
3
5
Assembly
4
3
7
Total
6
6
Budgeted Units of Production
7,000
Solution
Particulars
Total Number
Direct Labour Labours
Budgeted Labour Hours
Fabrication
35
5
175
Assembly
49
7
343
Total
518
Particulars
Rate
Direct Labour Labours
Factory Overhead Rate
Fabrication
18.75
5
94
Assembly
9.04
7
63
Total
157
Particulars
Rate
Per unit
Factory Overhead Rate
Speedboat
73.66
7,000
5,15,620
Bassboat
83.37
7,000
5,83,590
Total
10,99,210
Information Given
Total Budgeted Overhead
11,67,250
Bifurcation
Fabrication
7,87,500
Assembly
3,79,750
11,67,250
Labour Hours
Total
Particulars
Speed Boats
Bass Boats
Fabrication
2
3
5
Assembly
4
3
7
Total
6
6
Budgeted Units of Production
7,000
Solution
- Total number of budgeted direct labor hours
Particulars
Total Number
Direct Labour Labours
Budgeted Labour Hours
Fabrication
35
5
175
Assembly
49
7
343
Total
518
- Departmental Factory Overhead Rates
Particulars
Rate
Direct Labour Labours
Factory Overhead Rate
Fabrication
18.75
5
94
Assembly
9.04
7
63
Total
157
- Factory overhead allocated per unit for each product
Particulars
Rate
Per unit
Factory Overhead Rate
Speedboat
73.66
7,000
5,15,620
Bassboat
83.37
7,000
5,83,590
Total
10,99,210
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