FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Multiple Production Department Factory Overhead Rates
The total factory overhead for Bardot Marine Company is budgeted for the year at $793,750, divided into two departments: Fabrication, $581,250, and Assembly,
$212,500. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require three direct labor hours in Fabrication and four direct
labor hours in Assembly. The bass boats require two direct labor hours in Fabrication and one direct labor hour in Assembly. Each product is budgeted for 5,000 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
Assembly
b. Determine the departmental factory overhead rates for both departments.
per dlh
per dlh
Fabrication
Assembly
direct labor hours
direct labor hours
c. Determine the factory overhead allocated per unit for each product using the department factory overhead allocation rates.
Speedboat:
Bass boat:
per unit
per unit
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Transcribed Image Text:Multiple Production Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is budgeted for the year at $793,750, divided into two departments: Fabrication, $581,250, and Assembly, $212,500. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require three direct labor hours in Fabrication and four direct labor hours in Assembly. The bass boats require two direct labor hours in Fabrication and one direct labor hour in Assembly. Each product is budgeted for 5,000 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 Assembly b. Determine the departmental factory overhead rates for both departments. per dlh per dlh Fabrication Assembly direct labor hours direct labor hours c. Determine the factory overhead allocated per unit for each product using the department factory overhead allocation rates. Speedboat: Bass boat: per unit per unit
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