The total factory overhead for Aqua-Sport Marine Company is budgeted for the year at $900,000, divided into
Question:
The total factory overhead for Aqua-Sport Marine Company is budgeted for the year at $900,000, divided into two departments: Fabrication, $600,000, and Assembly, $300,000. Aqua-Sport manufactures two types of boats: speedboats and bass boats. The speedboats require 4 direct labor hours in Fabrication and 6 direct labor hours in Assembly. The bass boat require 6 direct labor hours in Fabrication and 4 direct labor hours in Assembly. Each product is budgeted for 250 units of production for the year. Determine
(a) The total number of budgeted direct labor hours for the year in each department,
(b) The departmental factory overhead rates for both departments, and
(c) The factory overhead allocated per unit for each product using the department factory overhead allocation rates.
Step by Step Answer:
Managerial Accounting
ISBN: b010ikdqzm
10th Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac