Multiple Production Department Factory Overhead Rates

The total factory overhead for Bardot Marine Company is budgeted for the year at $1,374,000, divided into two departments: Fabrication, $1,134,000, and Assembly, $240,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require four direct labor hours in Fabrication and one direct labor hour in Assembly. The bass boats require three direct labor hours in Fabrication and four direct labor hours in Assembly. Each product is budgeted for 6,000 units of production for the year.

When required, round all per unit answers to the nearest cent.

a. Determine the total number of budgeted direct labor hours for the year in each department.

Fabrication	_____ direct labor hours
Assembly	____ direct labor hours

b. Determine the departmental factory overhead rates for both departments.

Fabrication	___ per dlh
Assembly	____ per dlh

c. Determine the factory overhead allocated per unit for each product using the department factory overhead allocation rates.

Speedboat:	_____ per unit
Bass boat:	____ per unit