Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for...
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Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,458,500, divided into four activities: fabrication, $684,000; assembly, $252,000; setup, $285,000; and inspection, $237,500. 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 Bass boat 9,500 dlh 28,500 27,000 dlh 9,000 68 setups 502 119 inspections 831 38,000 dlh 36,000 dlh 570 setups 950 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 Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,458,500, divided into four activities: fabrication, $684,000; assembly, $252,000; setup, $285,000; and inspection, $237,500. 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 Bass boat 9,500 dlh 28,500 27,000 dlh 9,000 68 setups 502 119 inspections 831 38,000 dlh 36,000 dlh 570 setups 950 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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