Question
The total factory overhead for Bardot Marine Company is budgeted for the year at $600,000, divided into four activities: fabrication, $204,000; assembly, $105,000; setup, $156,000;
The total factory overhead for Bardot Marine Company is budgeted for the year at $600,000, divided into four activities: fabrication, $204,000; assembly, $105,000; setup, $156,000; and inspection, $135,000. 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 | 2,000 | dlh | 1,000 | dlh | 300 | setups | 1,100 | inspections |
| Bass boat | 1,000 | 2,000 | 100 | 400 | ||||
| 3,000 | dlh | 3,000 | dlh | 400 | setups | 1,500 | inspections | |
Each product is budgeted for 250 units of production for the year.
a. Determine the activity rates for each activity.
| Fabrication | $fill in the blank 1 per dlh |
| Assembly | $fill in the blank 2 per dlh |
| Setup | $fill in the blank 3 per setup |
| Inspection | $fill in the blank 4 per inspection |
b. Determine the activity-based factory overhead per unit for each product.
| Speedboats | $fill in the blank 5 per unit |
| Bass Boats | $fill in the blank 6 per unit |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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
Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
