Activity-Based Costing: Factory Overhead CostsThe total factory overhead for Bardot Marine Company is budgeted for the year at $919,050, divided into four activities: fabrication, $506,000; assembly, $198,000;setup, $117,300; and inspection, $97,750. Bardot Marine manufactures two types of boats: speedboats and bass boats. The activity-base usage quantities for eachproduct by each activity are as follows:SpeedboatBass boatFabricationAssemblySetupInspectionFabricationSpeedboat5,750 dlhEach product is budgeted for 6,500 units of production for the year.a. Determine the activity rates for each activity.per direct labor hourper direct labor hourBass boat17,25023,000 dlhAssembly16,500 dlh5,50022,000 dlhper setupper inspectionSetup41 setupsper unit304per unit345 setupsb. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar.Inspection72 inspections503575 inspections

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Description: Activity-Based Costing: Factory Overhead CostsThe total factory overhead for Bardot Marine Company is budgeted for the year at $919,050, divided into four activities: fabrication, $506,000; assembly, $198,000;setup, $117,300; and inspection, $97,750

Activity based costing is the one wherein the rates of overheads are determined based on specific…

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The total factory overhead for Bardot Marine Company is budgeted for the year at $919,050, divided into four activities: fabrication, $506,000; assembly, $198,000; setup, $117,300; and inspection, $97,750. 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 5,750 dlh 17,250 23,000 dlh Setup 41 setups 304 345 setups Each product is budgeted for 6,500 units of production for the year. a. Determine the activity rates for each activity. Fabrication $ Assembly $ Speedboat Bass boat Setup Inspection Speedboat $ Bass boat Assembly 16,500 dlh 5,500 22,000 dlh per direct labor hour per direct labor hour per setup per inspection b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar. per unit per unit Inspection 72 inspections 503 575 inspections

The total factory overhead for Bardot Marine Company is budgeted for the year at $919,050, divided into four activities: fabrication, $506,000; assembly, $198,000; setup, $117,300; and inspection, $97,750. 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 5,750 dlh 17,250 23,000 dlh Setup 41 setups 304 345 setups Each product is budgeted for 6,500 units of production for the year. a. Determine the activity rates for each activity. Fabrication $ Assembly $ Speedboat Bass boat Setup Inspection Speedboat $ Bass boat Assembly 16,500 dlh 5,500 22,000 dlh per direct labor hour per direct labor hour per setup per inspection b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar. per unit per unit Inspection 72 inspections 503 575 inspections

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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