Activity-Based Costing: Factory Overhead Costs

The total factory overhead for Bardot Marine Company is budgeted for the year at $1,032,000, divided into four activities: fabrication, $450,000; assembly, $186,000; setup, $216,000; and inspection, $180,000. 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:

Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,032,000, divided into four activities: fabrication, $450,000; assembly, $186,000; setup, $216,000; and inspection, $180,000. 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 Setup Inspection Speedboat Assembly 23,250 dih 7,750 54 setups 94 inspections 7,500 dih 22,500 30,000 din Bass boat 396 656 31,000 dih 450 setups 750 inspections Each product is budgeted for 2,500 units of production for the year. a. Determine the activity rates for each activity. Fabrication $ per direct labor hour Assembly $ per direct labor hour Setup $ per setup Inspection per inspection b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar. Speedboat per unit Bass boat $ per unit