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Activity-Based Costing: Factory Overhead Costs Question B, please. Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the
Activity-Based Costing: Factory Overhead Costs
Question B, please.
Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,360,000, divided into four activities: fabrication, $720,000; assembly, $266,000; setup, $204,000; and inspection, $170,000. 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 72 setups 528 600 setups Speedboat 10,000 dlh 30,000 40,000 dlh 28,500 dlh 125 inspections Bass boat 9,500 875 38,000 dlh 1000 inspections Each product is budgeted for 4,500 units of production for the year. a. Determine the activity rates for each activity Fabrication1 18 per direct labor hour Asembly7per direct labor hour Assembly Setup Inspection b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar. Speedboat Bass boat 340 per setup 170 V per inspection per unit per unitStep by Step Solution
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