Question
Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,165,050, divided into four activities: fabrication,
Activity-Based Costing: Factory Overhead Costs
The total factory overhead for Bardot Marine Company is budgeted for the year at $1,165,050, divided into four activities: fabrication, $567,000; assembly, $216,000; setup, $206,550; and inspection, $175,500. 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 | 6,750 | dlh | 20,250 | dlh | 49 | setups | 84 | inspections |
Bass boat | 20,250 | 6,750 | 356 | 591 | ||||
27,000 | dlh | 27,000 | dlh | 405 | setups | 675 | 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 | $ 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 |
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