Multiple Production Department Factory Overhead Rates

The total factory overhead for Bardot Marine Company is budgeted for the year at $1,215,000, divided into two departments: Fabrication, $855,000, and Assembly, $360,000. 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 two direct labor hours in Fabrication and three direct labor hours in Assembly. Each product is budgeted for 7,500 units of production for the year.

If 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