20.

Activity-Based Costing

Maritime Marine Company has total estimated factory overhead for the year of $1,028,700, divided into four activities: fabrication, $437,500; assembly, $205,200; setup, $162,000; and inspection, $224,000. Maritime manufactures two types of boats: a speedboat and a bass boat. The activity-base usage quantities for each product by each activity are as follows:

	Fabrication		Assembly		Setup		Inspection
Speedboat	1,200	dlh	1,700	dlh	40	setups	110	inspections
Bass boat	2,300		1,000		110		450
	3,500	dlh	2,700	dlh	150	setups	560	inspections

Each product is budgeted for 200 units of production for the year.

a. Determine the activity rates for each activity.

Fabrication	$fill in the blank 1 per dlh
Assembly	$fill in the blank 2 per dlh
Setup	$fill in the blank 3 per setup
Inspection	$fill in the blank 4 per inspection

b. Determine the factory overhead cost per unit for each product, using activity-based costing. If required, round to the nearest cent.

Speedboat	$fill in the blank 5
Bass boat	$fill in the blank 6