Question

Single Plantwide Factory Overhead Rate

The total factory overhead for Bardot Marine Company is budgeted for the year at $1,164,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboat and bass boat each require four direct labor hours for manufacture. Each product is budgeted for 6,000 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.
direct labor hours___

b. Determine the single plantwide factory overhead rate.
$ ____per dlh

c. Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate.

Speedboat	$____ per unit
Bass boat	$____ per unit

Answer 1

a.

	Units	Direct labor hours per unit	Total direct labor hours
Speedboat	6,000	4	24,000
Bass boat	6,000	4	24,000
Total			48,000

Total budgeted direct labor hours = 48,000

b.

Single plantwide factory overhead rate = Estimated factory overheads/Total budgeted direct labor hours

= 1,164,000/48,000

= $24.25 per direct labor hour

c.

Factory overhead per speedboat = Direct labor hour per unit x predetermined overhead rate

= 4 x 24.25

= $97

Factory overhead per Bass boat = Direct labor hour per unit x predetermined overhead rate

= 4 x 24.25

= $97

Speedboat	$97 per unit
Bass boat	$97 per unit