The total factory overhead for Bardot Marine Company is budgeted
for the year at $970,500, divided into two departments:
Fabrication, $727,500, and Assembly, $243,000. Bardot Marine
manufactures two types of boats: speedboats and bass boats. The
speedboats require three direct labor hours in Fabrication and two
direct labor hours in Assembly. The bass boats require two direct
labor hours in Fabrication and four direct labor hours in Assembly.
Each product is budgeted for 6,000 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.
b. Determine the departmental factory
overhead rates for both departments.
c. Determine the factory overhead
allocated per unit for each product using the department factory
overhead allocation rates.
The total factory overhead for Bardot Marine Company is budgeted for the year at $970,500, divided into two departments:
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