Question

# The total factory overhead for Bardot Marine Company is budgeted for the year at \$833,250, divided...

The total factory overhead for Bardot Marine Company is budgeted for the year at \$833,250, divided into two departments: Fabrication, \$660,000, and Assembly, \$173,250. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require two direct labor hours in Fabrication and one direct labor hour in Assembly. The bass boats require four direct labor hours in Fabrication and two direct labor hours in Assembly. Each product is budgeted for 5,500 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 direct labor hours Assembly direct labor hours

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

 Fabrication \$ per dlh Assembly \$ per dlh

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

 Speedboat: \$ per unit Bass boat: \$ per unit

 Fabrication: Speedboat Bass boat Total Budgeted production 5500 5500 X Direct labor hours per unit 2 2 Total direct labor hours 11000 11000 22000 Assembly : Speedboat Bass boat Total Budgeted production 5500 5500 X Direct labor hours per unit 2 4 Total direct labor hours 11000 22000 33000 a Fabrication 22000 direct labor hours Assembly 33000 direct labor hours b Fabrication 30 per dlh =660000/22000 Assembly 5.25 per dlh =173250/33000 c Speedboat 70.5 per unit =(2*30)+(2*5.25) Bass boat 81 per unit =(2*30)+(4*5.25)

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