Exercise 17-6 (Algo) Computing departmental overhead rates LO P2 Hydro Sports budgets overhead cost of $540,000 for the year; of this amount, $315,000 is traceable to the Assembly department and $225,000 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 5 in Assembly and 2 in Finishing. Budgeted direct labor hours for the deluxe model are 10 in Assembly and 4 in Finishing. The company budgets production of 150 units of the standard model and 150 units of the deluxe model for the year. 1. Compute each department's total number of budgeted direct labor hours for the year. 2. Compute departmental overhead rates for each department using direct labor hours for that department. 3. Compute overhead cost per unit for each model using departmental overhead rates. Actual direct labor hours for the standard model are 5 in Assembly and 2 in Finishing. Actual direct labor hours for the deluxe model are 10 in Assembly and 4 in Finishing. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute each department's total number of budgeted direct labor hours for the year. Assembly Department Standard Deluxe Totals Finishing Department Number of Units DLHs per Total Unit Hours DLHS per Unit Total Hours 150 150 5 750 2 300 10. 1,500 4 600 2,250 900 < Required 1 Required 2 > Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute departmental overhead rates for each department using direct labor hours for that department. Compute a departmental overhead rate for the Assembly department. Departmental OH rate Budgeted overhead cost $ 315,000 $ Budgeted direct labor hours 300 per direct labor hour 2,250 Compute a departmental overhead rate for the Finishing department. Budgeted overhead cost $ 225,000 S 375 Departmental OH rate per direct labor hour Budgeted direct labor hours 600 < Required 1 Required 3 > Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute overhead cost per unit for each model using departmental overhead rates. Actual direct labor hours for the standard model are 5 in Assembly and 2 in Finishing. Actual direct labor hours for the deluxe model are 10 in Assembly and 4 in Finishing. Standard Deluxe Department Departmental Overhead Rate Hours per Unit Overhead Allocated Hours per Unit Overhead Allocated Assembly $ 300 per direct labor hour 5 $ 1,500 10 $ 15,000 Finishing $ 375 per direct labor hour 2 750 4 3,000 Totals $ 2,250 $ 18,000 < Required 2 Required 3