Question

Single Plantsiss Factory Overheated Rate

The total factory overhead for Bardot Marine Company is budgeted for the year $2,236,500. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speed and bass boat each require six direct labor hours for manufacture. Each product is budgeted for 10,500 units for production for the year.

Answer 1

The question has not provided the requirement but I am answering based on the headline “Single Plantsiss Factory Overheated Rate”

Total budgeted labor hours

= Budgeted labor hour for speed boat + Budgeted labor hour for bass boat

= Budgeted production x Budgeted labor hour per unit

= 10,500 x 6 + 10,500 x 6

= 126,000 labor hours

Overhead absorption rate based on labor hours

= Budgeted overhead / Budgeted labor hours

= $2,236,500 / 126,000

= $17.75 per labor hour