Question
The total factory overhead for Bardot Marine Company is budgeted for the year at $1,375,200, divided into four activities: fabrication, $645,000; assembly, $240,000; setup, $264,450;
The total factory overhead for Bardot Marine Company is budgeted for the year at $1,375,200, divided into four activities: fabrication, $645,000; assembly, $240,000; setup, $264,450; and inspection, $225,750. 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 | 10,750 | dlh | 30,000 | dlh | 77 | setups | 134 | inspections |
Bass boat | 32,250 | 10,000 | 568 | 941 | ||||
43,000 | dlh | 40,000 | dlh | 645 | setups | 1075 | inspections |
Each product is budgeted for 5,500 units of production for the year.
a. Determine the activity rates for each activity.
Fabrication | $ per direct labor hour |
Assembly | $ per direct labor hour |
Setup | $ per setup |
Inspection | $ 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 |
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