Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Activity-based costing:factory overhead costs The total factory overhead for Cypress Marine Company is budgeted for the year at $1,234,500, divided into four activities: fabrication, $660,000,
Activity-based costing:factory overhead costs The total factory overhead for Cypress Marine Company is budgeted for the year at $1,234,500, divided into four activities: fabrication, $660,000, assembly, $261,000, setup, $171,000, and inspection, $142,500. 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: Fabrication Speedboat Bass boat Fabrication Assembly 21,750 dlh 7,250 29,000 dlh 22,500 30,000 dlh Each product is budgeted for 5,000 units of production for the year. a. Determine the activity rates for each activity. per dlh Assembly per dlh Setup per setup Inspection 190 per inspection b. Determine the activity-based factory overhead per unit for each product. Round all per unit answers to the nearest dollar. Speedboats $ Bass Boats Feedback 7,500 dlh 22 9 Show Me How 380 53 X per unit 108 X per unit Setup 54 setups 396 Inspection 450 setups 94 inspections 656 750 inspections
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started