Question

The total factory overhead for Bardot Marine Company is budgeted for the year at $1,082,125, divided into two departments: Fabrication, $841,500, and Assembly, $240,625. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require three direct labor hours in Fabrication and two direct labor hours in Assembly. The bass boats require three direct labor hours in Fabrication and three direct labor hours in Assembly. Each product is budgeted for 5,500 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 hoursAssembly direct labor hoursb. Determine the departmental factory overhead rates for both departments.Fabrication $per dlhAssembly $per dlhc. Determine the factory overhead allocated per unit for each product using the department factory overhead allocation rates.Speedboat: $per unitBass boat: $per unit

Answer 1

a. Determine the total number of budgeted direct labor hours for the year in each department.

• Fabrication 33,000 direct hours
• Assembly 27,500 direct hours

b. Determine the departmental factory overhead rates for both departments.

• Fabrication $841,500 / 33,000 direct hours = $25.50 per direct labor hour
• Assembly $240,625 / 27,500 direct hours = $8.75 per direct labor hour

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

• Speedboats = (3 x $25.50) + (2 x $8.75) = $94
• Bass boats = (3 x $25.50) + (3 x $8.75) = $102.75

Explanation:

total overhead expense $1,082,125

• Fabrication $841,500
• Assembly $240,625

speedboats (5,500 units)

• Fabrication 3 hour x 5,500 = 16,500 hours
• Assembly 2 hour x 5,500 = 11,000 hours

bass boats (5,500 units)

• Fabrication 3 hour x 5,500 = 16,500 hours
• Assembly 3 hours x 5,500 = 16,500 hours