Multiple production department factory
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 four direct labor hours in Fabrication and two direct labor hours in Assembly. The bass
boats require three direct labor hours in Fabrication and three 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
X direct labor hours
Assembly
X 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 $
X per speedboat
Total factory overhead $
per bass boat
