Question
Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,239,600, divided into four activities:
Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,239,600, divided into four activities: fabrication, $594,000; assembly, $210,000; setup, $237,600; and inspection, $198,000. 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. Speedboat 8,250 dih Bass boat 24,750 33,000 dih 22,500 dlh 7,500 30,000 dih 59 setups 436 103 inspections 722 495 setups 825 inspections Each product is budgeted for 7,000 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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