Single Plantwide Factory Overhead Rate The total factory overhead for Bardot Mar
ID: 2534357 • Letter: S
Question
Single Plantwide Factory Overhead Rate The total factory overhead for Bardot Marine Company is budgeted for the year at $556,500. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboat and bass boat each require three direct labor hours for manufacture. 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 y direct labor hours
b.Determine the single plantwide factory overhead rate. per dlh
c. Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate. Speedboat per unit Bass boat per unit
Explanation / Answer
a.
b. Single plantwide factory overhead rate = $556500/42000 = $13.25 per direct labor hour
c. Factory overhead allocated per unit:
Speedboat = 3 DLH x $13.25 = $39.75 per unit
Bass boat = 3 DLH x $13.25 = $39.75 per unit
Speedboats Bass boats Total Budgeted production in units 7000 7000 Direct labor hours per unit 3 3 Total budgeted direct labor hours 21000 21000 42000