Answered step by step
Verified Expert Solution
Question
1 Approved Answer
eBook Show Me How Calculator Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $915,600,
eBook Show Me How Calculator Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $915,600, divided into four activities: fabrication, $408,000; assembly, $168,000; setup, $183,600; and inspection, $156,000. Bardot 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 Assembly Setup Inspection Speedboat 6,000 dih 18,000 dih 4 3 setups 75 inspections Bass boat 18,000 6,000 317 525 24,000 dih 24,000 dih 360 setups 600 inspections Each product is budgeted for 6,500 units of production for the year. a. Determine the activity rates for each activity. Fabrication 17 per direct labor hour Assembly 7 per direct labor hour Setup 510 per setup Inspection $ 260 per inspection b. Determine the activity based factory overhead per unit for each product. Round to the nearest whole dollar. Speedboat per unit Bass boat per unit Feedback Check My Won Calculate (a) For each activity Activity budget Activity base sage Activity Rate (b) For each product Activity base usage x Activity Rate from Req(a) Activity cost per each activity. Then sum al activity costs per product to determine a total and divide the total overhead by busted units to drive the overhead perunt for each product
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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