Return t Exercise 4-6 (Algo) Computing departmental overhead rates LO P2 Hydro Sports budgets overhead cost of $621,000 for the year, of this amount, $405,000 is traceable to the Assembly department and $216,000 is traceable to the Finishing department. The company manufactures two types of jet skis: standard and deluxe. Budgeted direct labor hours for the standard model are 7 in Assembly and 1 in Finishing. Budgeted direct labor hours for the deluxe model are 8 in Assembly and 3 in Finishing. The company budgets production of 180 units of the standard model and 180 units of the deluxe model for the year 1. Compute each department's total number of budgeted direct labor hours for the year. 2. Compute departmental overhead rates for each department using direct labor hours for that department 3. Compute overhead cost per unit for each model using departmental overhead rates. Actual direct labor hours for the standard model are 7 in Assembly and 1 in Finishing. Actual direct labor hours for the deluxe model are 8 in Assembly and 3 in Finishing Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 31 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute each department's total number of budgeted direct labor hours for the year. Standard Deluxe Totals Number of Units Assembly Department DLHS per Total Unit Hours Finishing Department DLHS per Unit Total Hours 260 70 1,820 10 260 9 2,340 ( 00 260 520 4,160 780 Required 1 Required 2 Required 3 Compute departmental overhead rates for each department using direct labor hours for that department. Compute a departmental overhead rate for the Assembly department. Departmental OH rate Budgeted overhead cost Budgeted direct labor hours $416,000 s 4,160 100 per direct labor hour Compute a departmental overhead rate for the Finishing department. Budgeted overhead cost $234,000 $ Departmental OH rate 300 per direct labor hour Budgeted direct labor hours 780 < Required 1 Required 3 > Required 1. Required 2 Required 3 Compute overhead cost per unit for each model using departmental overhead rates. Actual direct labor hours for the standard model are 7 in Assembly and 1 in Finishing. Actual direct labor hours for the deluxe model are 8 in Assembly and 3 in Finishing. Standard Deluxe Department Departmental Overhead Rate Hours per Unit Overhead Allocated Hours per Unit Overhead Allocated Assembly $ 100 per direct labor hour Finishing $ 300 per direct labor hour 70 $ 10 700 9 $ 900 * 300 2x 600 Totals S 1,000 S 1,500 < Required 2 Required 3>