Question
Activity-based costing:factory overhead costs The total factory overhead for Cypress Marine Company is budgeted for the year at $607,500, divided into four activities: fabrication, $252,000,
Activity-based costing:factory overhead costs
The total factory overhead for Cypress Marine Company is budgeted for the year at $607,500, divided into four activities: fabrication, $252,000, assembly, $108,000, setup, $135,000, and inspection, $112,500. Cypress Marine manufactures two types of boats: speedboats and bass boats. The activity-base usage quantities for each product by each activity are as follows:
Item | Fabrication | Assembly | Setup | Inspection |
---|---|---|---|---|
Speedboat | 4,500 dlh | 13,500 dlh | 32 setups | 56 inspections |
Bass boat | 13,500 | 4,500 | 238 | 394 |
Total | 18,000 dlh | 18,000 dlh | 270 setups | 450 inspections |
Each product is budgeted for 7,500 units of production for the year.
a. Determine the activity rates for each activity.
Activities | Amount |
---|---|
Fabrication | fill in the blank 1 of 4$ per dlh |
Assembly | fill in the blank 2 of 4$ per dlh |
Setup | fill in the blank 3 of 4$ per setup |
Inspection | fill in the blank 4 of 4$ per inspection |
b. Determine the activity-based factory overhead per unit for each product. Round all per unit answers to the nearest dollar. Speedboats fill in the blank 1 of 2$ per unit Bass Boats fill in the blank 2 of 2$ per unit
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