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sveticcg [70]
3 years ago
6

Multiple Production Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is budgeted for the y

ear at $664,125, divided into two departments: Fabrication, $406,875, and Assembly, $257,250. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require three direct labor hours in Fabrication and three direct labor hours in Assembly. The bass boats require two direct labor hours in Fabrication and three direct labor hours in Assembly. Each product is budgeted for 3,500 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
Business
1 answer:
MrMuchimi3 years ago
3 0

Answer:

Instructions are listed below

Explanation:

Giving the following information:

The total factory overhead for Bardot Marine Company is budgeted for the year at $664,125, divided into two departments:

Fabrication, $406,875

Assembly, $257,250.

The speedboats require three direct labor hours in Fabrication and three direct labor hours in Assembly.

The bass boats require two direct labor hours in Fabrication and three direct labor hours in Assembly.

Each product is budgeted for 3,500 units of production for the year.

A) Budgeted direct labor hours:

Fabrication:

Speedboats= 3500*3= 10500 hours

Bass boats= 3500*2= 7000 hours

Total= 17,500

Assembly:

Speedboats= 3500*3= 10500 hours

Bass boats= 3500*3= 10500 hours

Total= 21,000 hours

B) Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Fabrication= 406875/17500= $23.25 per direct labor hour

Assembly= 257250/21000= $12.25

C) Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH Fabrication= 23.25*5 + 12.25*6= $189.75 per  unit

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