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$ 3 2 4 , 0 0 0 is traceable to the Finishing department. The company manufactures two types of jet skis: standard and deluxe.

$324,000 is traceable to the Finishing department. The company manufactures two types of jet skis: standard and deluxe. Budgeted direct labor hours for the standard model are 8 in Assembly and 1 in Finishing. Budgeted direct labor hours for the deluxe model are 10 in Assembly and 2 in Finishing. The company budgets production of 270 units of the standard model and 270 units of the deluxe model for the year.
Compute each department's total number of budgeted direct labor hours for the year.
Compute departmental overhead rates for each department using direct labor hours for that department.
Compute overhead cost per unit for each model using departmental overhead rates. Actual direct labor hours for the standard model are 8 in Assembly and 1 in Finishing. Actual direct labor hours for the deluxe model are 10 in Assembly and 2 in Finishing.
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Compute overhead cost per unit for each model using departmental overhead rates. Actual direct labor hours for the standard model are 8 in Assembly and 1 in Finishing. Actual direct labor hours for the deluxe model are 10 in Assembly and 2 in Finishing.
\table[[Department,Departmental Overhead Rate,Standard,Deluxe],[Hours per Unit,\table[[Overhead],[Allocated]],Hours per Unit,\table[[Overhead],[Allocated]]],[Assembly,,,,,],[Finishing,,,,,],[Totals,,,$,,$
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