Multiple production department factory overhead rates
The total factory overhead for Cypress Marine Company is budgeted for the year at $ divided into two departments: Fabrication, $ and Assembly, $
Cypress Marine manufactures two types of boats: speedboats and bass boats. The speedboats require two direct labor hours in Fabrication and two direct labor hours in
Assembly. The bass boats require one direct labor hour in Fabrication and four direct labor hours in Assembly. Each product is budgeted for 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.
Fabrication
direct labor hours
Assembly
direct labor hours
b Determine the departmental factory overhead rates for both departments.
Fabrication Department rate
per dlh
Assembly Department rate $
per dlh
c Determine the factory overhead allocated per unit for each product using the department factory overhead allocation rates.
Total factory overhead $
per speedboat
Total factory overhead $
per bass boat
