9.

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Activity-Based Costing: Factory Overhead Costs

The total factory overhead for Bardot Marine Company is budgeted for the year at $889,800, divided into four activities: fabrication, $432,000; assembly, $150,000; setup, $166,050; and inspection, $141,750. 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	6,750	dlh	18,750	dlh	49	setups	84	inspections
Bass boat	20,250		6,250		356		591
	27,000	dlh	25,000	dlh	405	setups	675	inspections

Each product is budgeted for 7,500 units of production for the year.

a. Determine the activity rates for each activity.

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

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

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