Question

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 (dlh) for manufacture. Each product is budgeted for 250 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.
direct labor hours
Points:
0 / 1
B. Determine the single plantwide factory overhead rate. When required, round all per-unit answers to the nearest cent.
per dlh
Points:
0 / 1
C. Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate. When required, round all per-unit answers to the nearest cent.
Speedboat per unit
Bass boat per unit

Answer 1

Bardot Marine Company

a) Total number of budgeted direct labor hours for the year is:

= 6,000 DLH.

b) The single plantwide factory overhead rate is:

= $100

c) The factory overhead allocated per unit for each product is:

= $1,200

Step-by-step explanation:

a) Data and Calculations:

Budgeted factory overhead = $600,000

Types of boats: Speedboat and Bass boat Total

Direct labor hours 12 DLH 12 DLH

Budgeted units 250 250 500

Total DLH 3,000 3,000 6,000

Single plantwide factory overhead rate = $600,000/6,000

= $100

The factory overhead allocated per unit for each product = overhead rate * number of hours for each unit

= 12 * $100

= $1,200