Question
Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,487,600, divided into four activities:
Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,487,600, divided into four activities: fabrication, $704,000; assembly, $282,000; setup, $270,600; and inspection, $231,000. 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: Inspection Fabrication Speedboat 11,000 dih Bass boat 33,000 Assembly 35,250 dih 11,750 Setup 79 setups 138 inspections 581 962 44,000 dih 47,000 dih 660 setups 1,100 inspections Each product is budgeted for 5,500 units of production for the year. a. Determine the activity rates for each activity. Fabrication per direct labor hour Assembly Setup Inspection 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. Speedboat Bass boat per unit per unit
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