The total factory overhead for Bardot Marine Company is budgeted for the year at $354,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboat and bass boat each require three direct labor hours for manufacture. Each product is budgeted for 4,000 units of production for the year.

When required, round all per unit answers to the nearest cent.

a.Determine the total number of budgeted direct labor hours for the year.

fill in the blank 1

direct labor hours

b.Determine the single plantwide factory overhead rate.

$fill in the blank 2

per dlh

c.Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate.

Speedboat$fill in the blank 3

per unitBass boat$fill in the blank 4

1. per unit

2.Multiple Production Department Factory Overhead Rates

The total factory overhead for Bardot Marine Company is budgeted for the year at $1,094,500, divided into two departments: Fabrication, $588,500, and Assembly, $506,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require one direct labor hour in Fabrication and four direct labor hours in Assembly. The bass boats require three direct labor hours in Fabrication and four direct labor hours in Assembly. Each product is budgeted for 5,500 units of production for the year.

If required, round all per unit answers to the nearest cent.

a.Determine the total number of budgeted direct labor hours for the year in each department.

Fabricationfill in the blank 1

direct labor hoursAssemblyfill in the blank 2

direct labor hours

b.Determine the departmental factory overhead rates for both departments.

Fabrication$fill in the blank 3

per dlhAssembly$fill in the blank 4

per dlh

c.Determine the factory overhead allocated per unit for each product using the department factory overhead allocation rates.

Speedboat:$fill in the blank 5

per unitBass boat:$fill in the blank 6

1. per unit

3.Activity-Based Costing: Factory Overhead Costs

The total factory overhead for Bardot Marine Company is budgeted for the year at $525,400, divided into four activities: fabrication, $255,000; assembly, $114,000;setup, $84,150; and inspection, $72,250. Bardot Marine manufactures two types of boats: speedboats and bass boats. Theactivity-baseusage quantities for each product by each activity are as follows:

FabricationAssemblySetupInspectionSpeedboat4,250dlh14,250dlh31setups53inspectionsBass boat12,7504,75022437217,000dlh19,000dlh255setups425inspections

Each product is budgeted for 2,500 units of production for the year.

a.Determine theactivity ratesfor each activity.

Fabrication$fill in the blank 1

per direct labor hourAssembly$fill in the blank 2

per direct labor hourSetup$fill in the blank 3

per setupInspection$fill in the blank 4

per inspection

b.Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar.

Speedboat$fill in the blank 5

per unitBass boat$fill in the blank 6

per unit

4.Single Plantwide Factory Overhead Rate

Kennedy Appliance Inc.'s Machining Department incurred $165,600 of factory overhead cost in producing hoses and valves. The two products consumed a total of 4,600 direct machine hours. Of that amount, hoses consumed 2,100 direct machine hours.

Determine the total amount of factory overhead that should be allocated to hoses using machine hours as the allocation base.

$fill in the blank 1

5.Single plantwide factory overhead rate

Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $84,900. Overhead is allocated to the three products on the basis of direct labor hours. The products have the following budgeted production volume and direct labor hours per unit:

Budgeted Production VolumeDirect Labor Hours Per UnitFlutes1,800units0.4Clarinets6001.5Oboes1,1001.1

If required, round all per unit answers to the nearest cent.

a.Determine the single plantwide overhead rate.

$fill in the blank 1

per direct labor hour

b.Use the overhead rate in (a) to determine the amount of total and per-unit overhead allocated to each of the three products.

Total

Factory Overhead CostPer Unit

Factory Overhead CostFlutes$fill in the blank 2

$fill in the blank 3

Clarinetsfill in the blank 4

fill in the blank 5

Oboesfill in the blank 6

fill in the blank 7

Total$fill in the blank 8

6.Multiple Production Department Factory Overhead Rate Method

Handy Leather, Inc., produces three sizes of sports gloves: small, medium, and large. A glove pattern is first stenciled onto leather in the Pattern Department. The stenciled patterns are then sent to the Cut and Sew Department, where the glove is cut and sewed together. Handy Leather uses the multiple production department factory overhead rate method of allocating factory overhead costs. Its factory overhead costs were budgeted as follows:

Pattern Department overhead$144,900Cut and Sew Department overhead239,200Total$384,100

The direct labor estimated for each production department was as follows:

Pattern Department2,100direct labor hoursCut and Sew Department2,600Total4,700direct labor hours

Direct labor hours are used to allocate the production department overhead to the products. The direct labor hours per unit for each product for each production department were obtained from the engineering records as follows:

Production DepartmentsSmall GloveMedium GloveLarge GlovePattern Department0.050.060.07Cut and Sew Department0.070.090.11Direct labor hours per unit0.120.150.18

If required, round all per unit answers to the nearest cent.

a.Determine the twoproduction department factory overhead rates.

Pattern Department$fill in the blank 1

per dlhCut and Sew Department$fill in the blank 2

per dlh

b.Use the two production department factory overhead rates to determine the factory overhead per unit for each product.

Small glove$fill in the blank 3

per unitMedium glove$fill in the blank 4

per unitLarge glove$fill in the blank 5

per unit

7.roduct CostsusingActivity Rates

Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost of the sales order processing activity is $295,500, and 19,700 sales orders are estimated to be processed.

a.Determine the activity rate of the sales order processing activity.

$fill in the blank 1

per sales order

b.Determine the amount of sales order processing cost associated with 11,200 sales orders.

$fill in the blank 2

8.Activity RatesandProduct Costsusing Activity-Based Costing

Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs andactivity basesare as follows:

ActivityBudgeted

Activity Cost

Activity BaseCasting$292,320Machine hoursAssembly160,860Direct labor hoursInspecting25,410Number of inspectionsSetup52,020Number of setupsMaterials handling33,150Number of loads

Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced follow:

Activity BaseEntryDiningTotalMachine hours5,3404,74010,080Direct labor hours4,6006,89011,490Number of inspections1,7605502,310Number of setups28060340Number of loads670180850Units produced10,6005,30015,900

a.Determine the activity rate for each activity.If required, round the rate to the nearest dollar.

ActivityActivity RateCasting$fill in the blank 1

per machine hourAssembly$fill in the blank 2

per direct labor hourInspecting$fill in the blank 3

per inspectionSetup$fill in the blank 4

per setupMaterials handling$fill in the blank 5

per load

b.Use the activity rates in (a) to determine the total and per-unit activity costs associated with each product.Round the per unit amounts to the nearest cent.

ProductTotal Activity CostActivity Cost Per UnitEntry Lighting Fixtures$fill in the blank 6

$fill in the blank 7

Dining Room Lighting Fixtures$fill in the blank 8

$fill in the blank 9

9.Activity Cost Pools,Activity Rates, andProduct Costsusing Activity-Based Costing

Caldwell Home Appliances Inc. is estimating the activity cost associated with producing ovens and refrigerators. The indirect labor can be traced into four separate activity pools, based on time records provided by the employees. The budgeted activity cost and activity-base information are provided as follows:

ActivityActivity Pool CostActivity BaseProcurement$12,600Number of purchase ordersScheduling90,000Number of production ordersMaterials handling11,000Number of movesProduct development50,000Number of engineering changesTotal cost$163,600The estimatedactivity-baseusage and unit information for two product lines was determined as follows:

Number of

Purchase OrdersNumber of

Production OrdersNumber of

MovesNumber of

Engineering Change Orders

UnitsOvens400800300801,000Refrigerators300400200120500Totals7001,2005002001,500a.Determine the activity rate for each activity cost pool.

Procurement (per purchase order)$fill in the blank 1

Scheduling (per production order)$fill in the blank 2

Materials handling (per move)$fill in the blank 3

Product development (per engineering change order)$fill in the blank 4

b.Determine the activity-based cost per unit of each product. Round the per unit rates to the nearest cent.

Ovens$fill in the blank 5

per unitRefrigerators$fill in the blank 6

per unit

10.Product Costsand Product Profitability Reports, using a Single Plantwide Factory Overhead Rate

Isaac Engines Inc. produces three productspistons, valves, and camsfor the heavy equipment industry. Isaac Engines has a very simple production process and product line and uses a single plantwide factory overhead rate to allocate overhead to the three products. The factory overhead rate is based on direct labor hours. Information about the three products for 20Y2 is as follows:

Budgeted

Volume

(Units)Direct Labor

Hours Per UnitPrice Per

UnitDirect Materials

Per UnitPistons6,0000.30$40$ 9Valves13,0000.50215Cams1,0000.105520The estimated direct labor rate is $20 per direct labor hour. Beginning and ending inventories are negligible and are, thus, assumed to be zero. The budgeted factory overhead for Isaac Engines is $235,200.

If required, round all per unit answers to the nearest cent.

a.Determine the plantwide factory overhead rate.

$fill in the blank 604fae059000fc1_1

per dlh

b.Determine the factory overhead and direct labor cost per unit for each product.

Direct Labor

Hours Per UnitFactory Overhead

Cost Per UnitDirect Labor

Cost Per UnitPistonsfill in the blank 604fae059000fc1_2

dlh$fill in the blank 604fae059000fc1_3

$fill in the blank 604fae059000fc1_4

Valvesfill in the blank 604fae059000fc1_5

dlh$fill in the blank 604fae059000fc1_6

$fill in the blank 604fae059000fc1_7

Camsfill in the blank 604fae059000fc1_8

dlh$fill in the blank 604fae059000fc1_9

$fill in the blank 604fae059000fc1_10

c.Use the information provided to construct a budgeted gross profit report by product line for the year ended December 31, 20Y2. Include the gross profit as a percent of sales in the last line of your report,rounded to one decimal place.

Isaac Engines Inc.Product Line Budgeted Gross Profit ReportsFor the Year Ended December 31, 20Y2PistonsValvesCams

$

fill in the blank 99dbcff6100afa5_2

$

fill in the blank 99dbcff6100afa5_3

$

fill in the blank 99dbcff6100afa5_4

Product Costs

$

fill in the blank 99dbcff6100afa5_6

$

fill in the blank 99dbcff6100afa5_7

$

fill in the blank 99dbcff6100afa5_8

fill in the blank 99dbcff6100afa5_10

fill in the blank 99dbcff6100afa5_11

fill in the blank 99dbcff6100afa5_12

fill in the blank 99dbcff6100afa5_14

fill in the blank 99dbcff6100afa5_15

fill in the blank 99dbcff6100afa5_16

Total Product Costs$

fill in the blank 99dbcff6100afa5_17

$

fill in the blank 99dbcff6100afa5_18

$

fill in the blank 99dbcff6100afa5_19

Gross profit (loss)$

fill in the blank 99dbcff6100afa5_20

$

fill in the blank 99dbcff6100afa5_21

$

fill in the blank 99dbcff6100afa5_22

Gross profit percentage of salesfill in the blank 99dbcff6100afa5_23

%fill in the blank 99dbcff6100afa5_24

%fill in the blank 99dbcff6100afa5_25

%

d.What does the report in (c) indicate to you?

Valves have the

gross profit as a percent of sales. Valves may require a

price or

cost to manufacture in order to achieve a higher profitability similar to the other two products.

Activity-Based Costing: Selling and Administrative Expenses

Jungle Junior Company manufactures and sells outdoor play equipment. Jungle Junior uses activity-based costing to determine the cost of the sales order processing and the customer return activity. The sales order processing activity has anactivity rateof $20 per sales order, and the customer return activity has an activity rate of $100 per return. Jungle Junior sold 2,500 swing sets, which consisted of 750 orders and 80 returns.

a.Determine the total sales order processing and customer return activity cost for swing sets.

$fill in the blank 1

b.Determine the per-unit sales order processing and customer return activity cost for swing sets. Round your answer to the nearest cent.

$fill in the blank 2

1. per unit

12.Single Plantwide Factory Overhead Rate

Spotted Cow Dairy Company manufactures three productswhole milk, skim milk, and creamin two production departments, Blending and Packing. The factory overhead for Spotted Cow Dairy is $433,200.

The three products consume both machine hours and direct labor hours in the two production departments as follows:

Direct Labor HoursMachine HoursBlending DepartmentWhole milk340970Skim milk370880Cream2903501,0002,200Packing DepartmentWhole milk420610Skim milk670750Cream1902401,2801,600Total2,2803,800

Required:

1.Determine the single plantwide factory overhead rate, using each of the following allocation bases: (a) direct labor hours and (b) machine hours.If required, round all amounts to the nearest dollar.

a. Direct labor overhead rate$fill in the blank 1

per direct labor hourb. Machine hour overhead rate$fill in the blank 2

per machine hour

2.Determine the product factory overhead costs, using (a) the direct labor hour plantwide factory overhead rate and (b) the machine hour plantwide factory overhead rate.

Whole MilkSkim MilkCreamDirect labor hours$fill in the blank 3

$fill in the blank 4

$fill in the blank 5

Machine hours$fill in the blank 6

$fill in the blank 7

$fill in the blank 8