Activity-Based Costing

Maritime Marine Company has total estimated factory overhead for the year of $1,028,400, divided into four activities: fabrication, $444,800; assembly, $192,400; setup, $127,200; and inspection, $264,000. Maritime 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	1,000	dlh	1,700	dlh	40	setups	80	inspections
Bass boat	2,200		900		80		400
	3,200	dlh	2,600	dlh	120	setups	480	inspections

Each product is budgeted for 200 units of production for the year.

a. Determine the activity rates for each activity.

Fabrication	$ per dlh
Assembly	$ per dlh
Setup	$ per setup
Inspection	$ 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	$