Question Completion:
The speed boat requires 2 hours in fabrication and 1 hour in assembly. The bass boat requires 1 hour in fabrication and 2 hours in assembly.
Answer:
<h2>Bardot Marine Company</h2>
A. Determination of the total number of budgeted direct labor hours in each department:
Speed boats Bass boats Total hours
Direct labor hours:
Fabrication 10,000 5,000 15,000
Assembly 5,000 10,000 15,000
Total 15,000 15,000 30,000
B. Determination of the departmental factory overhead rates for both departments:
Overhead rate = $367,500/30,000 = $12.25
Fabrication $ per dlh = $12.25
Assembly $ per dlh = $12.25
C. Determination of the factory overhead allocated per unit for each product using the department factory overhead allocation rates:
Speedboat: $ per unit = $36.75 ($12.25 x 3)
Bass boat: $ per unit = $36.75 ($12.25 x 3)
Explanation:
a) Data and Calculations:
Total factory overhead = $367,500
Speed Boats Bass Boats
Budgeted units 5,000 5,000
Hours per unit 3 3
Total direct labor hour 15,000 15,000
Fabrication 2 hrs 1 hr
Assembly 1 hr 2 hrs
Total direct labour hours:
Fabrication 10,000 5,000
Assembly 5,000 10,000
