Boat Builders Incorporated budgets overhead cost of $1,680,000 for the year; of this amount, $960,000 is traceable to the Assembly department and $720,000 is traceable to the Finishing department. The company manufactures two types of boats: Fishing and Yachts. Budgeted direct labor hours for the Fishing model are 28 in Assembly and 4 in Finishing. Budgeted direct labor hours for the Yacht model are 36 in Assembly and 12 in Finishing. The company budgets production of 400 units of the Fishing model and 400 units of the Yacht model for the year. Compute overhead cost per unit for each model using departmental overhead rates. Actual direct labor hours for the Fishing model are 28 in Assembly and 4 in Finishing. Actual direct labor hours for the Yacht model are 36 in Assembly and 12 in Finishing.

(*Please don't just write the answer, explain it in detail, so I can get a better understanding - thank you!)

Multiple Choice

A. Fishing: $1,050; Yacht: $1,500

B. Fishing: $2,700; Yacht: $1,500.

C. Fishing: $450; Yacht: $1,350.

D. Fishing: $1,500; Yacht: $2,700.

E. Fishing: $1,500; Yacht: $1,050.