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Water Spots Conpany budgets oveteed cost of $800,000 lor the yeat. Ih.pdf

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Water Spots Company budgeted $800,000 in overhead costs for the year. They budgeted to produce 200 units each of two boat models, pontoons and speedboats, with pontoons requiring 16 direct labor hours per unit and speedboats requiring 24 hours. Using the budgeted direct labor hours, the company calculated a plantwide overhead rate of $3.25 per hour.

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Water Spots Conpany budgets oveteed cost of $800,000 lor the yeat. Ihe company manutactutes two types of boats Pontoons and Speedboats Budgeted diect bbot hours pet und aie 16 tor the Pontoen mosel and 24 for the Speedbost model. The company budgets production of 200 unas of the Pontoon model and 200 unts of the Speedbost mode for the yeac. The plantwide owethend rate using budgetod diect labor hours h : ses600cosh3sin00penbul 325000 GeI DWH

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