2.

Multiple Production Department Factory Overhead Rates

The total factory overhead for Bardot Marine Company is budgeted for the year at $1,238,250, divided into two departments: Fabrication, $1,053,000, and Assembly, $185,250. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require two direct labor hours in Fabrication and two direct labor hours in Assembly. The bass boats require four direct labor hours in Fabrication and one direct labor hour in Assembly. Each product is budgeted for 6,500 units of production for the year.

If required, round all per unit answers to the nearest cent.

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.

3.

Activity-Based Costing: Factory Overhead Costs

The total factory overhead for Bardot Marine Company is budgeted for the year at $1,382,400, divided into four activities: fabrication, $588,000; assembly, $240,000; setup, $302,400; and inspection, $252,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The activity-base usage quantities for each product by each activity are as follows:

	Fabrication		Assembly		Setup		Inspection
Speedboat	10,500	dlh	30,000	dlh	76	setups	131	inspections
Bass boat	31,500		10,000		554		919
	42,000	dlh	40,000	dlh	630	setups	1,050	inspections

Each product is budgeted for 3,500 units of production for the year.

a. Determine the activity rates for each activity.

b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar.

4.

Activity-Based Costing: Selling and Administrative Expenses

Jungle Junior Company manufactures and sells outdoor play equipment. Jungle Junior uses activity-based costing to determine the cost of the sales order processing and the customer return activity. The sales order processing activity has an activity rate of $20 per sales order, and the customer return activity has an activity rate of $100 per return. Jungle Junior sold 2,500 swing sets, which consisted of 750 orders and 80 returns.

a. Determine the total sales order processing and customer return activity cost for swing sets.

b. Determine the per-unit sales order processing and customer return activity cost for swing sets. Round your answer to the nearest cent.

5. Single Plantwide Factory Overhead Rate

Kennedy Appliance Inc.s Machining Department incurred $99,000 of factory overhead cost in producing hoses and valves. The two products consumed a total of 3,000 direct machine hours. Of that amount, hoses consumed 1,400 direct machine hours.

Determine the total amount of factory overhead that should be allocated to hoses using machine hours as the allocation base.