Multiple Production Department Factory Overhead Rates The to

Multiple Production Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is budgeted for the year at $1,167,250, divided into two departments: Fabrication, $787,500, and Assembly, $379,750. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require two direct labor hours in Fabrication and four direct labor hours in Assembly. The bass boats require three direct labor hours in Fabrication and three direct labor hours in Assembly. Each product is budgeted for 7,000 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 35 X direct labor hours Assembly 49 X direct labor hours b. Determine the departmental factory overhead rates for both departments. Fabrication 18.75 x per dh Assembly 9.04 X per dih c. Determine the factory overhead allocated per unit for each product using the department factory overhead allocation rates Speedboat: 73.66 x per unit Bass boat: SC8337]X per unit

Information Given

Total Budgeted Overhead

11,67,250

Bifurcation

Fabrication

7,87,500

Assembly

3,79,750

11,67,250

Labour Hours

Total

Particulars

Speed Boats

Bass Boats

Fabrication

Assembly

Total

Budgeted Units of Production

7,000

Solution

Particulars

Total Number

Direct Labour Labours

Budgeted Labour Hours

Fabrication

175

Assembly

343

Total

518

Particulars

Rate

Direct Labour Labours

Factory Overhead Rate

Fabrication

18.75

Assembly

9.04

Total

157

Particulars

Rate

Per unit

Factory Overhead Rate

Speedboat

73.66

7,000

5,15,620

Bassboat

83.37

7,000

5,83,590

Total

10,99,210



Information Given

Total Budgeted Overhead	11,67,250
Bifurcation
Fabrication	7,87,500
Assembly	3,79,750
	11,67,250

	Labour Hours	Total
Particulars	Speed Boats	Bass Boats
Fabrication	2	3	5
Assembly	4	3	7
Total	6	6

Budgeted Units of Production	7,000


Solution

Total number of budgeted direct labor hours

Particulars	Total Number	Direct Labour Labours	Budgeted Labour Hours
Fabrication	35	5	175
Assembly	49	7	343
Total			518

Departmental Factory Overhead Rates

Particulars	Rate	Direct Labour Labours	Factory Overhead Rate
Fabrication	18.75	5	94
Assembly	9.04	7	63
Total			157

Factory overhead allocated per unit for each product

Particulars	Rate	Per unit	Factory Overhead Rate
Speedboat	73.66	7,000	5,15,620
Bassboat	83.37	7,000	5,83,590
Total			10,99,210

Multiple Production Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is budgeted for the year at $1,167,250, divided into

Multiple Production Department Factory Overhead Rates The to

Solution

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