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Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,275,600, divided into four activities: fabrication, $646,000; assembly, $280,000; setup, $188,100; and inspection, $161,500. 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 9,500 dlh 30,000 dlh 68 setups 119 inspections Bass boat 28,500 10,000 502 831 38,000 dlh 40,000 dlh 570 setups 950 inspections Each product is budgeted for 4,500 units of production for the year. a. Determine the activity rates for each activity. Fabrication 646,000 X per direct labor hour Assembly $ 280,000 X per direct labor hour Setup $ 188,100 X per setup Inspection $ 161,500 X per inspection b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar. Speedboat 92 V per unit Bass boat 191 V per unit

Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,275,600, divided into four activities: fabrication, $646,000; assembly, $280,000; setup, $188,100; and inspection, $161,500. 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 9,500 dlh 30,000 dlh 68 setups 119 inspections Bass boat 28,500 10,000 502 831 38,000 dlh 40,000 dlh 570 setups 950 inspections Each product is budgeted for 4,500 units of production for the year. a. Determine the activity rates for each activity. Fabrication 646,000 X per direct labor hour Assembly $ 280,000 X per direct labor hour Setup $ 188,100 X per setup Inspection $ 161,500 X per inspection b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar. Speedboat 92 V per unit Bass boat 191 V per unit

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,275,600, divided into four activities: fabrication, $646,000; assembly, $280,000; setup, $188,100; and inspection, $161,500. 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 9,500 dlh 30,000 dlh 68 setups 119 inspections Bass boat 28,500 10,000 502 831 38,000 dlh 40,000 dlh 570 setups 950 inspections Each product is budgeted for 4,500 units of production for the year. a. Determine the activity rates for each activity. Fabrication $ 646,000 X per direct labor hour Assembly $280,000 X per direct labor hour Setup $ 188,100 X per setup Inspection $ 161,500 X per inspection b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar. Speedboat 92 V per unit Bass boat 191 V per unit %24 %24
Transcribed Image Text:Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,275,600, divided into four activities: fabrication, $646,000; assembly, $280,000; setup, $188,100; and inspection, $161,500. 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 9,500 dlh 30,000 dlh 68 setups 119 inspections Bass boat 28,500 10,000 502 831 38,000 dlh 40,000 dlh 570 setups 950 inspections Each product is budgeted for 4,500 units of production for the year. a. Determine the activity rates for each activity. Fabrication $ 646,000 X per direct labor hour Assembly $280,000 X per direct labor hour Setup $ 188,100 X per setup Inspection $ 161,500 X per inspection b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar. Speedboat 92 V per unit Bass boat 191 V per unit %24 %24
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