Activity-Based Costing: Factory Overhead CostsNOORGOGUOThe total factory overhead for Bardot Marine Company is budgeted for the year at $1,205,100, divided into four activities: fabrication, $528,000; assembly, $192,000;setup, $262,350; and inspection, $222,750. Bardot Marine manufactures two types of boats: speedboats and bass boats. The activity-base usage quantities for eachproduct by each activity are as follows:Fabrication8,250 dih24,75033,000 dihAssembly24,000 dih8,00032,000 din495 setupsEach product is budgeted for 6,000 units of production for the year.a. Determine the activity rates for each activity.Fabricationper direct labor hourAssemblyper direct labor hourSetupper setup.Inspectionper inspectionb. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar.SpeedboatBass boatSpeedboatBass boatper unitper unitSetup59 setups436Inspection103 inspections722825 inspections

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Description: Activity-Based Costing: Factory Overhead CostsNOORGOGUOThe total factory overhead for Bardot Marine Company is budgeted for the year at $1,205,100, divided into four activities: fabrication, $528,000; assembly, $192,000;setup, $262,350; and inspecti

Activity rates for each Activity = Total Factory overhead for each Activity/Activity rate

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Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,205,100, divided into four activities: fabrication, $528,000; assembly, $192,000; setup, $262,350; and inspection, $222,750. 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 8,250 dih Setup 59 setups 436 495 setups Each product is budgeted for 6,000 units of production for the year. a. Determine the activity rates for each activity.. Speedboat Bass boat i 24,750 33,000 dih Speedboat Bass boat Assembly 24,000 dih 8,000 32,000 din Inspection 103 inspections 722 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. per unit per unit 825 inspections

Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,205,100, divided into four activities: fabrication, $528,000; assembly, $192,000; setup, $262,350; and inspection, $222,750. 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 8,250 dih Setup 59 setups 436 495 setups Each product is budgeted for 6,000 units of production for the year. a. Determine the activity rates for each activity.. Speedboat Bass boat i 24,750 33,000 dih Speedboat Bass boat Assembly 24,000 dih 8,000 32,000 din Inspection 103 inspections 722 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. per unit per unit 825 inspections

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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