Question

The total factory overhead for Bardot Marine Company is budgeted for the year at $1,027,000, divided into two departments: Fabrication, $526,500, and Assembly, $500,500. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require one direct labor hour in Fabrication and three direct labor hours in Assembly. The bass boats require two direct labor hours in Fabrication and four direct labor hours in Assembly. Each product is budgeted for 6,500 units of production for the year. If required, round all per unit answers to the nearest cent. a. Determine the total number of budgeted direct labor hours for the year in each department. Fabrication direct labor hours direct labor hours Assembly b. Determine the departmental factory overhead rates for both departments. per dih Fabrication Assembly $ $ per dih 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

Answer 1

a) Total number of budgeted direct labor hours for the year in each department

	Fabrication	Assembly
Budgeted Units	6500 Units	6500 Units
Direct Labor Hours Per Unit for speed boat	1	3
Total Direct Labor Hours for speed boat	6500	19,500
Direct Labor Hours per Unit for bass boat	2	4
Total Direct Labor Hours for bass boat	13000	26,000
Total Direct Labor Hours	19500	45,500

b) Departmental factory overhead rates for both departments

	Fabrication	Assembly
Total Factory Overhead	$526500	$500500
Total Direct Labor Hours	19500	45500
Departmental Factory Overhead Rate per direct labor hour	$27	$11

c) Factory overhead allocated per unit for each product using the department factory overhead allocation rates.

	Speed boat Per Unit	Bass boat Per Unit
Overhead Rate fabrication Department	$27	$27
Direct Labor Hour per unit	1	2
Fabrication Cost Per Unit	$27	$54
Overhead Rate assembly Department	$11	$11
Direct Labor Hour per unit	3	4
Assembly Cost Per Unit	33	44
Total Cost Per Unit	$60	$98

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