Question
total factory overhead for Bardot Marine Company is budgeted for the year at $778,050, divided into four activities: fabrication, $357,000; assembly, $147,000; setup, $148,050; and
total factory overhead for Bardot Marine Company is budgeted for the year at $778,050, divided into four activities: fabrication, $357,000; assembly, $147,000; setup, $148,050; 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 | 5,250 | dlh | 15,750 | dlh | 38 | setups | 66 | inspections |
Bass boat | 15,750 | 5,250 | 277 | 459 | ||||
21,000 | dlh | 21,000 | dlh | 315 | setups | 525 | inspections |
Each product is budgeted for 3,500 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 |
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