Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Federal Tax Accounting 2022

Authors: Frank L. Brunetti

1st Edition

080805631X, 9780808056317

More Books

Students also viewed these Accounting questions

Question

What was the positive value of Max Weber's model of "bureaucracy?"

Answered: 1 week ago