Question
Casual Cuts Inc. has total estimated factory overhead for the year of $225,000, divided into four activities: cutting, $90,000; sewing, $22,500; setup, $80,000; and inspection,
Casual Cuts Inc. has total estimated factory overhead for the year of $225,000, divided into four activities: cutting, $90,000; sewing, $22,500; setup, $80,000; and inspection, $32,500. Casual Cuts manufactures two types of men's pants: jeans and khakis. The activity-base usage quantities for each product by each activity are as follows:
Cutting Sewing Setup Inspection
Jeans 500dlh 1,000dlh 250setups 100 inspections
Khakis 1,000 500 750 400
1,500dlh 1,500dlh 1,000 setups 500 inspections
Each product is budgeted for 10,000 units of production for the year.
a.Determine the activity rates for each activity.
Cutting $ per dlh
Sewing $ per dlh
Setup $ per setup
Inspection $ per inspection
b.Determine the factory overhead cost per unit for each product, using activity-based costing. Round your answers to two decimal places.
Jeans $
Khakis $
please show how you get the answers for both sections
Maritime Marine Company has total estimated factory overhead for the year of $1,033,400, divided into four activities: fabrication, $406,400; assembly, $165,000; setup, $132,000; and inspection, $330,000. 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 900dlh 1,400dlh 60setups 100inspections
Bass boat 2,300 1,100 90 500
3,200dlh 2,500dlh 150setups 600inspections
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 $
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