Activity-Based Costing: Factory Overhead Costs

The total factory overhead for Bardot Marine Company is budgeted for the year at $856,400, divided into four activities: fabrication, $336,000; assembly, $155,000;setup, $197,400; and inspection, $168,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. Theactivity-baseusage quantities for each product by each activity are as follows:

FabricationAssemblySetupInspectionSpeedboat7,000dlh23,250dlh50setups88inspectionsBass boat21,0007,75037061228,000dlh31,000dlh420setups700inspections

Each product is budgeted for 7,500 units of production for the year.

a.Determine theactivity ratesfor each activity.

Fabrication$per direct labor hourAssembly$per direct labor hourSetup$per setupInspection$per inspection

b.Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar.

Speedboat$per unitBass boat$per unit