Exercise 4-6 (Algo) Computing departmental overhead rates LO P2 Hydro Sports budgets overhead cost of $450,000 for the year, of this amount, $280,500 is traceable to the Assembly department and $176,000 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 7 in Assembly and 1 in Finishing. Budgeted direct labor hours for the deluxe model are 10 in Assembly and 3 in Finishing The company budgets production of 110 units of the standard model and 110 units of the deluxe model for the year. 1. Compute each department's total number of budgeted direct labor hours for the year. 2. Compute departmental overhead rates for each department using direct labor hours for that department. 3. Compute overhead cost per unit for each model using departmental overhead rates. Actual direct labor hours for the standard model are 7 in Assembly and 1 in Finishing. Actual direct labor hours for the deluxe model are 10 in Assembly and 3 in Finishing. Complete this question by entering your answers in the tabs below. Required 11 Required 2 Required 3 Compute each department's total number of budgeted direct labor hours for the year. *

Exercise 4-6 (Algo) Computing departmental overhead rates LO P2 Hydro Sports budgets overhead cost of $450,000 for the year, of this amount, $280,500 is traceable to the Assembly department and $176,000 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 7 in Assembly and 1 in Finishing. Budgeted direct labor hours for the deluxe model are 10 in Assembly and 3 in Finishing The company budgets production of 110 units of the standard model and 110 units of the deluxe model for the year. 1. Compute each department's total number of budgeted direct labor hours for the year. 2. Compute departmental overhead rates for each department using direct labor hours for that department. 3. Compute overhead cost per unit for each model using departmental overhead rates. Actual direct labor hours for the standard model are 7 in Assembly and 1 in Finishing. Actual direct labor hours for the deluxe model are 10 in Assembly and 3 in Finishing. Complete this question by entering your answers in the tabs below. Required 11 Required 2 Required 3 Compute each department's total number of budgeted direct labor hours for the year. *

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 2BE: Multiple production department factory overhead rates The total factory overhead for Bardot Marine...

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