al Marine Company has total estimated factory overhead for the year of $2,055,000, divided into four activities: fabrication, $825,000; assembly, $270,000; setup, $536,000; and inspection, $424,000. Coral nufactures two types of boats: a speedboat and a bass boat. The activity-base usage quantities for each product by each activity are as follows: Fabrication Assembly Setup Inspection eedboat 1,200 dlh 1,800 dih 60 setups 600 inspections ss boat 1,800 1,200 100 200 3,000 dlh 3,000 dlh 160 setups 800 inspections h product is budgeted for 200 units of production for the year. Determine the activity rates for each activity. prication per dlh sembly $4 per dih Eup per setup pection per inspection Determine the factory overhead cost per unit for each product, using activity-based costing. eedboat ss boat

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Coral Marine Company has total estimated factory overhead for the year
$2,055,000, divided into four activities: fabrication, $825,000; assembly, $270,000; setup, $536,000; and inspection, $424,000. Coral
manufactures two types of boats: a speedboat and a bass boat. The activity-base usage quantities for each product by each activity are as follows:
Fabrication
Assembly
Setup
Inspection
Speedboat
1,200 dlh
1,800 dlh
60 setups
600 inspections
Bass boat
1,800
1,200
100
200
3,000 dlh
3,000 dlh
160 setups
800 inspections
Each product is budgeted for 200 units of production for the year.
a. Determine the activity rates for each activity.
Fabrication
per dlh
Assembly
per dlh
Setup
per setup
Inspection
per inspection
b. Determine the factory overhead cost per unit for each product, using activity-based costing.
Speedboat
Bass boat
$
Transcribed Image Text:Coral Marine Company has total estimated factory overhead for the year $2,055,000, divided into four activities: fabrication, $825,000; assembly, $270,000; setup, $536,000; and inspection, $424,000. Coral manufactures two types of boats: a speedboat and a bass boat. The activity-base usage quantities for each product by each activity are as follows: Fabrication Assembly Setup Inspection Speedboat 1,200 dlh 1,800 dlh 60 setups 600 inspections Bass boat 1,800 1,200 100 200 3,000 dlh 3,000 dlh 160 setups 800 inspections Each product is budgeted for 200 units of production for the year. a. Determine the activity rates for each activity. Fabrication per dlh Assembly per dlh Setup per setup Inspection per inspection b. Determine the factory overhead cost per unit for each product, using activity-based costing. Speedboat Bass boat $
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