Question
The total factory overhead for Bardot Marine Company is budgeted for the year at $1,015,100, divided into four activities: fabrication, $513,000; assembly, $224,000; setup, $149,850;
The total factory overhead for Bardot Marine Company is budgeted for the year at $1,015,100, divided into four activities: fabrication, $513,000; assembly, $224,000; setup, $149,850; and inspection, $128,250. 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 | 6,750 | dlh | 21,000 | dlh | 49 | setups | 84 | inspections |
| Bass boat | 20,250 | 7,000 | 356 | 591 | ||||
| 27,000 | dlh | 28,000 | dlh | 405 | setups | 675 | inspections | |
Each product is budgeted for 7,000 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 |
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
Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
13th Edition
978-0697789938
