Question

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

Answer 1

Answer:

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)