Question
The total factory overhead for Bardot Marine Company is budgeted for the year at $927,900, divided into four activities: fabrication, $416,000; assembly, $144,000; setup, $198,900;
The total factory overhead for Bardot Marine Company is budgeted for the year at $927,900, divided into four activities: fabrication, $416,000; assembly, $144,000; setup, $198,900; and inspection, $169,000. 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 | 6,500 | dlh | 18,000 | dlh | 47 | setups | 81 | inspections |
| Bass boat | 19,500 | 6,000 | 343 | 569 | ||||
| 26,000 | dlh | 24,000 | dlh | 390 | setups | 650 | inspections | |
Each product is budgeted for 5,000 units of production for the year.
a. Determine the activity rates for each activity.
| Fabrication | $fill in the blank 1 per direct labor hour |
| Assembly | $fill in the blank 2 per direct labor hour |
| 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. Round to the nearest whole dollar.
| Speedboat | $fill in the blank 5 per unit |
| Bass boat | $fill in the blank 6 per unit |
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Accounting For Managers And Entrepreneurs
Authors: Charles T. Horngren
8th Edition
1269778684, 9781269778688
