Question

Multiple Production Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is budgeted for the year at $723,375, divided into two departments: Fabrication, $588,000, and Assembly, 5138,375. Bardot Marine manufactures two types of boats speedboats and bass boats. The speedboatsregione director hour is Fabrication and one director hour in Assembly. The bes t require four direct labor hours in Fabrication and two drector hours in Assembly. Each product is budgeted for 4.500 units of production for the year If required, round all per unit answers to the nearest cent a. Determine the total number of budgeted rect labor hours for the year in each department Fabrication director hours Assembly direct labor hours b. Determine the departments factory overhead rates for both departments Asembly 6. Determine the factory overhead allocated for each out the department factory overhead allocation

Answer 1

Working Notes: Budgeted Units 4500 each products Fabrication Assembly Speed Boat (hrs) (a) 1 No of Speed Boats (b) 4500 4500 1. Total hours req (Speed Boats) (ax! 45001 4500 Bass Boat (hrs) (a) No of Bass Boats (b) II. Total hours req (Bass Boats) (axb) 4 4500 18000 4500 9000 A. Total Hours requirec (I + II) 22500 13500 B. Departmental Overheads Depart. Overheads rate (B/A) $5,85,000 $ $ 26.00 $ 1,38,375 10.25 Product wise Overhead Allocation Speed Boat Bass Boat Fabrication ( 1 hour x $26) $ 26.00 Fabrication ( 4 hours x $26) $ 104.00 Assembly ( 1 hour x $10.25) $ 10.25 Assembly ( 2 hours x $10.25) $ 20.50 $ 36.25 $ 124.50 Solutions a. Determination of Total Number of Budgeted direct labour hours Fabrication 22500 direct labor hours Assembly 13500 direct labor hours b. Determination of departmental factory overhead rates Fabrication $ 26.00 per dlh Assembly $ 10.25 per dlh c. Determination of factory overhead allocation per unit of product Speed Boat $ 36.25 per unit Bass Boat $ 124.50 per unit

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