Exercise 4-6 (Algo) Computing departmental overhead rates LO P2 Hydro Sports budgets overhead cost of $450,000 for the year, of this amount, $280,500 is traceable to the Assembly department and $176,000 is traceable to the Finishing department. The company manufactures two types of jet skis: standard and deluxe. Budgeted direct labor hours for the standard model are 7 in Assembly and 1 in Finishing. Budgeted direct labor hours for the deluxe model are 10 in Assembly and 3 in Finishing The company budgets production of 110 units of the standard model and 110 units of the deluxe model for the year. 1. Compute each department's total number of budgeted direct labor hours for the year. 2. Compute departmental overhead rates for each department using direct labor hours for that department. 3. Compute overhead cost per unit for each model using departmental overhead rates. Actual direct labor hours for the standard model are 7 in Assembly and 1 in Finishing. Actual direct labor hours for the deluxe model are 10 in Assembly and 3 in Finishing. Complete this question by entering your answers in the tabs below. Required 11 Required 2 Required 3 Compute each department's total number of budgeted direct labor hours for the year. *
Exercise 4-6 (Algo) Computing departmental overhead rates LO P2 Hydro Sports budgets overhead cost of $450,000 for the year, of this amount, $280,500 is traceable to the Assembly department and $176,000 is traceable to the Finishing department. The company manufactures two types of jet skis: standard and deluxe. Budgeted direct labor hours for the standard model are 7 in Assembly and 1 in Finishing. Budgeted direct labor hours for the deluxe model are 10 in Assembly and 3 in Finishing The company budgets production of 110 units of the standard model and 110 units of the deluxe model for the year. 1. Compute each department's total number of budgeted direct labor hours for the year. 2. Compute departmental overhead rates for each department using direct labor hours for that department. 3. Compute overhead cost per unit for each model using departmental overhead rates. Actual direct labor hours for the standard model are 7 in Assembly and 1 in Finishing. Actual direct labor hours for the deluxe model are 10 in Assembly and 3 in Finishing. Complete this question by entering your answers in the tabs below. Required 11 Required 2 Required 3 Compute each department's total number of budgeted direct labor hours for the year. *
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 2BE: Multiple production department factory overhead rates The total factory overhead for Bardot Marine...
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