The total factory overhead for Bardot Marine Company is budgeted for the year at

Question

The total factory overhead for Bardot Marine Company is budgeted for the year at $1,038,750, divided into two departments: Fabrication, $645,000, and Assembly, $393,750. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require four direct labor hours in Fabrication and three direct labor hours in Assembly. The bass boats require two direct labor hours in Fabrication and four direct labor hours in Assembly. Each product is budgeted for 5,000 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.

b. Determine the departmental factory overhead rates for both departments.

c. Determine the factory overhead allocated per unit for each product using the department factory overhead allocation rates.

Fabrication direct labor hours Assembly direct labor hours

Explanation / Answer

Calculate following :

a. Determine the total number of budgeted direct labor hours for the year in each department.

b. Determine the departmental factory overhead rates for both departments.

c. Determine the factory overhead allocated per unit for each product using the department factory overhead allocation rates.

Fabrication 5000*4+5000*2 =30000 direct labour hours Assembly 5000*3+5000*4=35000 direct labour hours

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.