Question
The total factory overhead for Bardot Marine Company is budgeted for the year at $884,200, divided into four activities: fabrication, $432,000; assembly, $175,000; setup, $151,200;
The total factory overhead for Bardot Marine Company is budgeted for the year at $884,200, divided into four activities: fabrication, $432,000; assembly, $175,000; setup, $151,200; and inspection, $126,000. 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 | 6,000 | dlh | 18,750 | dlh | 43 | setups | 75 | inspections |
Bass boat | 18,000 | 6,250 | 317 | 525 | ||||
24,000 | dlh | 25,000 | dlh | 360 | setups | 600 | inspections |
Each product is budgeted for 6,500 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 |
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