Computing Departmental Overhead Rates: Budgeted Direct Labor

Exercise 4-6 (Algo) Computing departmental overhead rates LO P2 Hydro Sports budgets overhead cost of $621,000 for the year; of this amount, $405,000 is traceable to the Assembly department and $216,000 is traceable to the Finishing department. The company manufactures two types ofjet 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 8 in Assembly and 3 in Finishing. The company budgets production of180 units ofthe standard model and 180 units ofthe 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 8 in Assembly and 3 in Finishing. 0 Answer is complete and correct. Complete this question by entering your answers In the tabs below. Required 1 Required 2 Required 3 Compute each department's total number of budgeted direct labor hours for the year. Required 2 >