The total factory overhead for Bardot Marine Company is budgeted for the year at $763,125, divided into two departments: Fabrication, $666,875, and Assembly, $96,250. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require four direct labor hours in Fabrication and one direct labor hour in Assembly. The bass boats require one direct labor hour in Fabrication and one direct labor hour in Assembly. Each product is budgeted for 5,500 units of production for the year.
Required:
a. Determine the total number of budgeted direct labor hours for the year in each department.
b. Determine the departmental factory overhead rates for both departments.
c. Determine the factory overhead allocated per unit for each product using the department factory overhead allocation rates.
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