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Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $929,400, divided into four activities: fabrication,
Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $929,400, divided into four activities: fabrication, $405,000; assembly, $168,000; setup, $194,400; and inspection, $162,000. 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 21,000 dlh Inspection Setup Speedboat 6,750 dlh 49 setups 84 inspections Bass boat 20,250 7,000 356 591 27,000 dlh 28,000 dlh 405 setups 675 inspections Each product is budgeted for 3,000 units of production for the year. a. Determine the activity rates for each activity. Fabrication Assembly Setup Inspection per direct labor hour per direct labor hour per setup per inspection b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar. per unit Speedboat Bass boat per unit
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