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Sassafrass, Inc makes boats - 2 types, Big and Little (Imaginative, right?) Sassafrass has 2 departments: Fabrication has an Overhead allocation of $420,000 and Assembly
Sassafrass, Inc makes boats - 2 types, Big and Little (Imaginative, right?) Sassafrass has 2 departments: Fabrication has an Overhead allocation of $420,000 and Assembly is allocated $180,000 of Overhead. Both Departments are budgeted for 250 units of production.
Fabrication Assembly
Big Boat (direct labor hrs) 8 dlh 4 dlh
LittleBoat 4dlh 8 dlh
Fabrication Department overhead rate = $140 per dlh Assembly Department overhead rate = $60 per dlh
Determine the factory overhead allocated per unit for Big Boats and Little Boats, respectively.
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