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Activity-Based Costing Maritime Marine Company has total estimated factory overhead for the year of $992,900, divided into four activities: fabrication, $412,300; assembly, $168,000; setup,
Activity-Based Costing Maritime Marine Company has total estimated factory overhead for the year of $992,900, divided into four activities: fabrication, $412,300; assembly, $168,000; setup, $137,600; and inspection, $275,000. 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: Inspection Speedboat Bass boat Fabrication 1,100 dih 2,000 Assembly 1,700 dih Setup: 60 setups 100 inspections 700 100 400 3,100 dlh 2,400 dih 160 setups 500 inspections Each product is budgeted for 100 units of production for the year. a. Determine the activity rates for each activity. Fabrication: per dih Assembly Setup Inspection per dih per setup 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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