Question
The Turtle Company has total estimated factory overhead for the year of $1,200,000, divided into four activities: fabrication, $600,000; assembly, $240,000; setup, $200,000; and materials
The Turtle Company has total estimated factory overhead for the year of $1,200,000, divided into four activities: fabrication, $600,000; assembly, $240,000; setup, $200,000; and materials handling, $160,000. Turtle manufactures two products, Boogie Boards and Surf Boards. The activity-base usage quantities for each product by each activity are as follows:
Fabrication | Assembly | Setup | Materials Handling | |||||
Boogie Boards | 10,000 dlh | 30,000 dlh | 60 setups | 100 moves | ||||
Surf Boards | 30,000 | 10,000 | 440 | 700 | ||||
40,000 dlh | 40,000 dlh | 500 setups | 800 moves |
Each product is budgeted for 10,000 units of production for the year. Determine the following:
a. The activity rates for each activity.
Fabrication | $ per dlh. |
Assembly | $ per dlh. |
Setup | $ per setup. |
Materials Handling | $ per move. |
b. The factory overhead cost per unit for each product using activity-based costing. Round your answers to two decimal places.
Factory overhead per unit for Boogie Board | $ |
Factory overhead per unit for Surf Board | $ |
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