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
