Question
Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,039,600, divided into four activity pools:
Activity-Based Costing: Factory Overhead Costs
The total factory overhead for Bardot Marine Company is budgeted for the year at $1,039,600, divided into four activity pools: fabrication,, $448,000; assembly, $180,000; setup, $222,600; and inspection, $189,000. 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 | Assembly | Setup | Inspection | |||||
Speedboat | 7,000 | dlh | 22,500 | dlh | 50 | setups | 88 | inspections |
Bass boat | 21,000 | 7,500 | 370 | 612 | ||||
28,000 | dlh | 30,000 | dlh | 420 | setups | 700 | inspections |
Each product is budgeted for 5,000 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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