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Activity-based costing: factory overhead costs The total factory overhead for Cypress Marine Company is budgeted for the year at $900,000, divided into four activities: fabrication,
Activity-based costing: factory overhead costs The total factory overhead for Cypress Marine Company is budgeted for the year at $900,000, divided into four activities: fabrication, $240,000, assembly, $128,000, setup, $160,000, and inspection, $372,000. Cypress Marine manufactures two types of boats: speedboats and bass boats. The activity-base usage quantities for each product by each activity are as follows: Inspection Fabrication Assembly Speedboat 2,800 dlh 1,200 dlh Setup 300 setups 1,100 inspections Bass boat 2,000 2,000 100 400 4,800 dlh 3,200 dlh 400 setups 1,500 inspections Each product is budgeted for 400 units of production for the year. a. Determine the activity rates for each activity. Fabrication Assembly Setup Inspection per dlh per dlh per setup per inspection b. Determine the activity-based factory overhead per unit for each product. Speedboats $ per unit Bass Boats $ per unit Check My Work Next
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