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Coral Marine Company has total estimated factory overhead for the year of $2,055,000, divided into four activities: fabrication, $825,000; assembly, $270,000; setup, $536,000; and inspection,
Coral Marine Company has total estimated factory overhead for the year of $2,055,000, divided into four activities: fabrication, $825,000; assembly, $270,000; setup, $536,000; and inspection, $424,000. Coral 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 Fabrication 1,200 dlh Assembly 1,800 dlh Setup 60 setups Speedboat 600 inspections Bass boat 1,800 1,200 100 200 3,000 dlh 3,000 dlh 160 setups 800 inspections Each product is budgeted for 200 units of production for the year. a. Determine the activity rates for each activity. Fabrication per dlh $ per dlh Assembly Setup E $ per setup Inspection per inspection b. Determine the factory overhead cost per unit for each product, using activity-based costing. Speedboat $ Bass boat $
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