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 departmental overhead rates for each department using direct labor hours for that department

Multiple Choice

• Assembly: $112.50 per DLH; Finishing: $37.50 per DLH.

• Assembly: $65.63 per DLH; Finishing: $262.50 per DLH.

• Assembly: $37.50 per DLH; Finishing: $112.50 per DLH.

• Assembly: $262.50 per DLH; Finishing: $65.63 per DLH.

• Assembly: $44.65 per DLH; Finishing: $108.25 per DLH.