Multiple production department factory overhead rates OBJ. 3 The total factory overhead for Bardot Marine Company is
Question:
Multiple production department factory overhead rates OBJ. 3 The total factory overhead for Bardot Marine Company is budgeted for the year at
$600,000 divided into two departments: Fabrication, $420,000, and Assembly, $180,000.
Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require 8 direct labor hours in Fabrication and 4 direct labor hours in Assembly.
The bass boats require 4 direct labor hours in Fabrication and 8 direct labor hours in Assembly. Each product is budgeted for 250 units of production for the year. Determine
(a) the total number of budgeted direct labor hours for the year in each department,
(b) the departmental factory overhead rates for both departments, and
(c) the factory overhead allocated per unit for each product using the department factory overhead allocation rates.
Step by Step Answer:
Financial And Managerial Accounting
ISBN: 9781305267831,9781305267848
13th Edition
Authors: Carl S. Warren , James M. Reeve , Jonathan Duchac