Question

Single Plantwide Factory Overhead Rate The total factory overhead for Bardot Marine Company is budgeted for the year at $600,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboat and bass boat each require 12 direct labor hours for manufacture. Each product is budgeted for 250 units of production for the year.

Single Plantwide Factory Overhead Rate The total factory overhead for Bardot Marine Company is budgeted for the year at $600,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboat and bass boat each require 12 direct labor hours for manufacture. Each product is budgeted for 250 units of production for the year. a. Determine the total number of budgeted direct labor hours for the year. direct labor hours b. Determine the single plantwide factory overhead rate. $ per dlh c. Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate. Speedboats per unit Bass boats per unit

Answer 1

(a)

6,000

direct labor hours

Explanations

Direct Labor hours
Speedboats (250 units * 12)	3000
Bass boats (250 units * 12)	3000
	6000

(b)

$           100

per dlh

Explanation

Plantwide factory overhead rate
Total factory overhead	$600,000
÷ Direct labor hours	6000
	$        100

(c)

Speedboats	$        1,200	per unit
Bass boats	$        1,200	per unit

Explanations

Speedboats (12 * $100)	$        1,200
Bass boats (12 * $100)	$        1,200