Question
1. Multiple Production Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is budgeted for the year at $1,033,500, divided into two
1. Multiple Production Department Factory Overhead Rates
The total factory overhead for Bardot Marine Company is budgeted for the year at $1,033,500, divided into two departments: Fabrication, $666,000, and Assembly, $367,500. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require three direct labor hours in Fabrication and three direct labor hours in Assembly. The bass boats require three direct labor hours in Fabrication and two direct labor hours in Assembly. Each product is budgeted for 6,000 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 | fill in the blank 1 direct labor hours |
Assembly | fill in the blank 2 direct labor hours |
b. Determine the departmental factory overhead rates for both departments.
Fabrication | $fill in the blank 3 per dlh |
Assembly | $fill in the blank 4 per dlh |
c. Determine the factory overhead allocated per unit for each product using the department factory overhead allocation rates.
Speedboat: | $fill in the blank 5 per unit |
Bass boat: | $fill in the blank 6 per unit |
2. Activity-Based Costing: Factory Overhead Costs
The total factory overhead for Bardot Marine Company is budgeted for the year at $972,050, divided into four activities: fabrication, $434,000; assembly, $180,000; setup, $195,300; and inspection, $162,750. Bardot Marine manufactures two types of boats: speedboats and bass boats. The activity-base usage quantities for each product by each activity are as follows:
Fabrication | Assembly | Setup | Inspection | |||||
Speedboat | 7,750 | dlh | 22,500 | dlh | 56 | setups | 97 | inspections |
Bass boat | 23,250 | 7,500 | 409 | 678 | ||||
31,000 | dlh | 30,000 | dlh | 465 | setups | 775 | inspections |
Each product is budgeted for 7,000 units of production for the year.
a. Determine the activity rates for each activity.
Fabrication | $fill in the blank 1 per direct labor hour |
Assembly | $fill in the blank 2 per direct labor hour |
Setup | $fill in the blank 3 per setup |
Inspection | $fill in the blank 4 per inspection |
b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar.
Speedboat | $fill in the blank 5 per unit |
Bass boat | $fill in the blank 6 per unit |
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