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Activity-Based Costing Mainline Marine Company has total estimated factory overhead for the year of $1,003,300, divided into four activities: fabrication, $500,500; assembly, $173,800; setup, $104,000;
Activity-Based Costing Mainline Marine Company has total estimated factory overhead for the year of $1,003,300, divided into four activities: fabrication, $500,500; assembly, $173,800; setup, $104,000; and inspection, $225,000. Mainline manufactures two types of boats: a speedboat and a bass boat. The activity-base usage quantities for each product by each activity are as follows: Fabrication Assembly Setup Inspection Speedboat 1,200 dlh 1,500 dlh 40 setups 100 inspections Bass boat 2,300 700 90 400 3,500 dlh 2,200 dlh 130 setups 500 inspections Each product is budgeted for 200 units of production for the year. a. Determine the activity rates for each activity. Fabrication $ 143 per dlh Assembly $ 79 per dlh Setup $ 1,731 per setup Inspection 450 per inspection b. Determine the factory overhead cost per unit for each product, using activity-based costing. If required, round to the nearest cent. Speedboat Bass boat
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