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Question - Hydro Sports budgets overhead of $312,000 for the year. The company manufactures two types of jet skis: standard and deluxe. The standard model requires 6 direct labor hours and the deluxe model requires 10 direct labor hours. The company budgets production of 130 units of the standard model and 130 units of the deluxe model for the year.
Required -
1. Compute the total number of budgeted direct labor hours for the year.
2. Compute the plantwide overhead rate using direct labor hours.
3. Compute overhead cost per unit for each model using the plantwide overhead rate.
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