Activity-Based Costing: Factory Overhead Costs

The total factory overhead for Bardot Marine Company is budgeted for the year at $1,496,400, divided into four activities: fabrication, $814,000; assembly, $342,000; setup, $183,150; and inspection, $157,250. 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	9,250	dlh	28,500	dlh	67	setups	116	inspections
Bass boat	27,750		9,500		488		809
	37,000	dlh	38,000	dlh	555	setups	925	inspections

Each product is budgeted for 4,500 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