Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i am not sure which Hours to invorporate into the formula. plz explain Department Factory Overhead Rates The total factory overhead for Bardot Marine Company

i am not sure which Hours to invorporate into the formula. plz explain image text in transcribed
image text in transcribed
Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is budgeted for the year at $471,750 divided into two departments: Fabrication, $330,000, and Assembly, $141,750. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require 2 direct labor hours in Fabrication and 4 direct labor hours in Assembly. The bass boats require 2 direct labor hours in Fabrication and 3 direct labor hours in Assembly. Each product is budgeted for 3,000 units of production for the year. Determine (A) the total number of budgeted direct labor hours for the year in each department, (B) the departmental factory overhead rates for both departments, and (C) the factory overhead allocated per unit for each product using the department factory overhead allocation rates. When required, round all per unit answers to the nearest cent. Show how you computed your answers. Problem 3 - Activity-based costing: factory overhead costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,369,800, divided into four activities: fabrication, $704,000; assembly, $261,000; setup, $220,800; and inspection, $184,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The activity-base usage quantities for each product by each activity are as follows: Each product is budgeted for 5,500 units of production for the year. Determine (A) the activity rates for each activity and (B) the activity-based factory overhead per unit for each product. Round to the nearest \$. Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is budgeted for the year at $471,750 divided into two departments: Fabrication, $330,000, and Assembly, $141,750. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require 2 direct labor hours in Fabrication and 4 direct labor hours in Assembly. The bass boats require 2 direct labor hours in Fabrication and 3 direct labor hours in Assembly. Each product is budgeted for 3,000 units of production for the year. Determine (A) the total number of budgeted direct labor hours for the year in each department, (B) the departmental factory overhead rates for both departments, and (C) the factory overhead allocated per unit for each product using the department factory overhead allocation rates. When required, round all per unit answers to the nearest cent. Show how you computed your answers. Problem 3 - Activity-based costing: factory overhead costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,369,800, divided into four activities: fabrication, $704,000; assembly, $261,000; setup, $220,800; and inspection, $184,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The activity-base usage quantities for each product by each activity are as follows: Each product is budgeted for 5,500 units of production for the year. Determine (A) the activity rates for each activity and (B) the activity-based factory overhead per unit for each product. Round to the nearest \$

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Charles T. Horngren, Jr Harrison, Walter T.

3rd Edition

0137419848, 978-0137419845

More Books

Students also viewed these Accounting questions