Multiple Production Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is budgeted for the year at $897,750, divided into two departments: Fabrication, $675,000, and Assembly, $222,750. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require four direct labor hours in Fabrication and four direct labor hours in Assembly. The bass boats require two direct labor hours in Fabrication and two direct labor hours in Assembly. Each product is budgeted for 4,500 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 Keating Co. is considering disposing of equipment with a cost of $73,000 and accumulated depreciation of $51,100. Keating Co. can sell the equipment through a broker for $26,000 less 8% commission. Alternatively, Gunner Co. has offered to lease the equipment for five years for a total of $49,000. Keating will incur repair, insurance, and property tax expenses estimated at $12,000 over the five-year period. At lease-end, the equipment is expected to have no residual value. The net differential income from the lease alternative is O $19,620 $15,696 O $13,080 O $9,156