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Hydro Sports budgets overhead cost of $621,000 for the year; of this amount, $405,000 is traceable to the Assembly department and $216,000 is traceable
Hydro Sports budgets overhead cost of $621,000 for the year; of this amount, $405,000 is traceable to the Assembly department and $216,000 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 7 in Assembly and 1 in Finishing. Budgeted direct labor hours for the deluxe model are 8 in Assembly and 3 in Finishing. The company budgets production of 180 units of the standard model and 180 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 7 in Assembly and 1 in Finishing. Actual direct labor hours for the deluxe model are 8 in Assembly and 3 in Finishing. Answer is not complete. Complete this question by entering your answers in the tabs below. Required I Required 2 Required 3 Compute each department's total number of budgeted direct labor hours for the year. Number Assembly Department of Units DLHS per Total Finishing Department DLHS per Total Unit Hours Unit Hours Standard 180 70 1,260 1 180 Deluxe Totals 180 80 1,440 3 540 2,700 720 Required 1 Required 2 >
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