Multiple Production Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is budgeted for the year at $827,500, divided into two departments: Fabrication, $662,500, and Assembly, $165,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require two direct labor hours in Fabrication and two direct labor hours in Assembly. The bass boats require three direct labor hours in Fabrication and one direct labor hour in Assembly. Each product is budgeted for 5,000 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 in each department. direct labor hours direct labor hours b. Determine the departmental factory overhead rates for both departments. por din per din Fabrication Assembly Fabrication

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
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Chapter4: Activity-based Costing
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Problem 2BE: Multiple production department factory overhead rates The total factory overhead for Bardot Marine...
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Multiple Production Department Factory Overhead Rates
The total factory overhead for Bardot Marine Company is budgeted for the year at $827,500, divided into two departments: Fabrication, $662,500, and Assembly,
$165,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require two direct labor hours in Fabrication and two direct labor
hours in Assembly. The bass boats require three direct labor hours in Fabrication and one direct labor hour in Assembly. Each product is budgeted for 5,000 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 in each department.
Fabrication.
Assembly
direct labor hours
direct labor hours
b. Determine the departmental factory overhead rates for both departments.
Fabrication
por din
per dih
Assembly
c. Determine the factory overhead allocated per unit for each product using the department factory overhead allocation rates.
Speedboat:
Bass boat:
per unit
per unit
Transcribed Image Text:Multiple Production Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is budgeted for the year at $827,500, divided into two departments: Fabrication, $662,500, and Assembly, $165,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require two direct labor hours in Fabrication and two direct labor hours in Assembly. The bass boats require three direct labor hours in Fabrication and one direct labor hour in Assembly. Each product is budgeted for 5,000 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 in each department. Fabrication. Assembly direct labor hours direct labor hours b. Determine the departmental factory overhead rates for both departments. Fabrication por din per dih Assembly c. Determine the factory overhead allocated per unit for each product using the department factory overhead allocation rates. Speedboat: Bass boat: per unit per unit
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