Question: $ 3 2 4 , 0 0 0 is traceable to the Finishing department. The company manufactures two types of jet skis: standard and deluxe.
$ is traceable to the Finishing department. The company manufactures two types of jet skis: standard and deluxe. Budgeted direct labor hours for the standard model are in Assembly and in Finishing. Budgeted direct labor hours for the deluxe model are in Assembly and in Finishing. The company budgets production of units of the standard model and units of the deluxe model for the year.
Compute each department's total number of budgeted direct labor hours for the year.
Compute departmental overhead rates for each department using direct labor hours for that department.
Compute overhead cost per unit for each model using departmental overhead rates. Actual direct labor hours for the standard model are in Assembly and in Finishing. Actual direct labor hours for the deluxe model are in Assembly and in Finishing.
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Compute departmental overhead rates for each department using direct labor hours for that department.
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