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

Name: Activity-Based Costing: Factory Overhead CostsThe total factory overh
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
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…

Business

Accounting

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

See similar textbooks

Similar questions

Pinnacle Corp. budgeted $245,500 of overhead cost for the current year. Actual overhead costs for the year were $240,720. Pinnacle's plantwide allocation base, machine hours, was budgeted at 48,450 hours. Actual machine hours were 55,160. A total of 101,090 units was budgeted to be produced and 98,000 units were actually produced. Pinnacle's plantwide factory overhead rate for the current year is: a. $5.07 per machine hour b. $4.97 per machine hour c. $2.43 per machine hour d. $2.38 per machine hour
A company estimates that it will incur $3300000 of overhead each year in three departments: Processing, Packaging, and Testing. The company performs 800 processing transactions, 200000 packaging transactions, and 2000 tests per year in producing 400000 drums of product Oil and 600000 drums of product Sludge. The following data are available: Activity Cost Pool Estimated Use of Driver Processing 800 Packaging Testing 200000 2000 $1796250. $1503750. $1230000. $1650000. Cost 300 $1350000 Production information for the two products is as follows: 120000 1600 1350000 Oil Sludge Activity Cost Pool Estimated Use of Driver Estimated Use of Driver Processing 500 Packaging Testing 600000 The amount of overhead assigned to Sludge using ABC is 80000 400
Botosan Factory has budgeted factory overhead for the year at $614,520, and budgeted direct labor hours for the year are 284,500. If the actual direct labor hours for the month of May are 258,900, the overhead allocated for May is
Pinnacle Corp. budgeted $218,050 of overhead cost for the current year. Actual overhead costs for the year were $207,500. Pinnacle's plantwide allocation base, machine hours, was budgeted at 53,300 hours. Actual machine hours were 46,460. A total of 91,830 units was budgeted to be produced and 98,000 units were actually produced. Pinnacle's plantwide factory overhead rate for the current year is: a.$2.26 per machine hour b.$4.09 per machine hour c.$3.89 per machine hour d.$2.37 per machine hour
Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 14,000 hours for production: Variable overhead cost: Indirect factory labor $44,800 Power and light 10,360 Indirect materials 21,000 Total variable overhead cost $ 76,160 Fixed overhead cost: Supervisory salaries $54,380 Depreciation of plant and equipment 14,310 Insurance and property taxes 26,710 Total fixed overhead cost 95,400 Total factory overhead cost $171,560 Tannin has available 18,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 13,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows: Actual variable factory overhead cost: Indirect factory labor $40,560…
Multiple Production Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is budgeted for the year at $1,205,750, divided into two departments: Fabrication, $945,750, and Assembly, $260,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require four direct labor hours in Fabrication and three direct labor hours in Assembly. The bass boats require two direct labor hours in Fabrication and one direct labor hour in Assembly. Each product is budgeted for 6,500 units of production for the year. If required, round all per unit answers to the nearest cent. a. Determine the total number of budgeted direct labor hours for the year in each department. Fabrication fill in the blank 1 direct labor hours Assembly fill in the blank 2 direct labor hours b. Determine the departmental factory overhead rates for both departments. Fabrication $fill in the blank 3 per dlh Assembly $fill in the blank 4 per dlh c.…
Che Chenango Industries uses 13 units of part JR63 each month in the production of radar equipment. The cost of manufacturing one unit of JR63 is the following: Direct material $ 4,500 Material handling (20% of direct-material cost) Direct labor Manufacturing overhead (150% of direct labor) 900 40,000 60,000 $105,400 Total manufacturing cost Material handling represents the direct variable costs of the Receiving Department that are applied to direct materials and purchased components on the basis of their cost. This is a separate charge in addition to manufacturing overhead. Chenango Industries' annual manufacturing overhead budget is one-third variable and two-thirds fixed. Scott Supply, one of Chenango Industries' reliable vendors, has offered to supply part number JR63 at a unit price of $65,000. Required: 1. If Chenango Industries purchases the JR63 units from Scott, the capacity Chenango Industries used to manufacture these par would be idle. Should Chenango Industries decide to…
Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for the Welding Department for May of the current year. The company expected to operate the department at 100% of normal capacity of 7,700 hours. Variable costs: Indirect factory wages $22,330 Power and light 15,862 Indirect materials 13,552 Total variable cost $51,744 Fixed costs: Supervisory salaries $14,700 Depreciation of plant and equipment 37,710 Insurance and property taxes 11,500 Total fixed cost 63,910 Total factory overhead cost $115,654 During May, the department operated at 8,200 standard hours. The factory overhead costs incurred were indirect factory wages, $24,020; power and light, $16,590; indirect materials, $14,700; supervisory salaries, $14,700; depreciation of plant and equipment, $37,710; and insurance and property taxes, $11,500. Required: Prepare a factory overhead cost…
Chenango Industries uses 12 units of part JR63 each month in the production of radar equipment. The cost of manufacturing one unit of JR63 is the following: 5 4,000 Direct naterial Material handling (20x of direct-naterial cost) Direct labor Manufarturing overhead (150% of direct labor) 39,000 S8,500 Total manufacturing cost $102, 300 Material handling represents the direct variable costs of the Recelving Department that are applied to direct materials and purchased components on the basis of their cost. This is a separate charge in addition to manufacturing overhead. Chenango Industries' annual manufacturing overhead budget is one-third variable and two thirds fixed. Scott Supply, one of Chenango Industries' reliable vendors. has offered to supply part number JR63 at a unit price of $64,000.
Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 51,600 machine hours per year, which represents 25,800 units of output. Annual budgeted fixed factory overhead costs are $258,000 and the budgeted variable factory overhead cost rate is $2.50 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was 19,500 units, which took 40,600 machine hours. Actual fixed factory overhead costs for the year amounted to $251,600 while the actual variable overhead cost per unit was $2.40. Assume that at the end of the year, management of Patel and Sons decides that the overhead cost variances should be allocated to WIP Inventory, Finished Goods Inventory, and Cost of Goods Sold (CGS) using the following percentages: 10%, 20%, and 70%, respectively. Provide the proper journal entry to close out the…
Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for the Welding Department for May of the current year. The company expected to operate the department at 100% of normal capacity of 6,200 hours. Variable costs: Indirect factory wages $20,460 Power and light 13,826 Indirect materials 11,346 Total variable cost $45,632 Fixed costs: Supervisory salaries $10,410 Depreciation of plant and equipment 26,700 Insurance and property taxes 8,150 Total fixed cost 45,260 Total factory overhead cost $90,892 During May, the department operated at 6,600 standard hours. The factory overhead costs incurred were indirect factory wages, $22,000; power and light, $14,450; indirect materials, $12,300; supervisory salaries, $10,410; depreciation of plant and equipment, $26,700; and insurance and property taxes, $8,150. Required: Prepare a factory overhead cost…
Water Sports Company budgets overhead cost of $840,000 for the year. The company manufactures two types of boats: Pontoons and Speedboats. Budgeted direct labor hours per unit are 16 for the Pontoon model and 24 for the Speedboat model. The company budgets production of 200 units of the Pontoon model and 200 units of the Speedboat model for the year. Compute overhead cost per unit for each model using the plantwide overhead rate. Actual direct labor hours per unit are 16 for the Pontoon model and 24 for the Speedboat model.