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Multiple Production Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is budgeted for the year at $528,750, divided into two departments:

  1. Multiple Production Department Factory Overhead Rates

    The total factory overhead for Bardot Marine Company is budgeted for the year at $528,750, divided into two departments: Fabrication, $363,750, and Assembly, $165,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require two direct labor hours in Fabrication and two direct labor hours in Assembly. The bass boats require one direct labor hour in Fabrication and one direct labor hour in Assembly. Each product is budgeted for 5,000 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

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    Calculate: (a) For each department, multiply number of pant type x direct labor hours required. Add both pant hours together to obtain the total for the department. (b) Total overhead for each department hours calculated in Req. (a) = departmental rate (c) For each pant type, determine the overhead from each department by multiplying direct labor hours x rate determined in Req. (b). Then add together the overhead from both departments for each pant type to obtain overhead allocated per unit of product.

    Learning Objective 3

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