The total factory overhead for Magnum Corporation is budgeted for the year at $500,000. This is divided into three activity pools: Fabrication $246,000 Assembly $144,000 Setup $110,000 Magnum manufactures two types of kayaks: Basic and Deluxe. The activity-based usage quantity for each project by activity is as follows: Fabrication Assembly Setup Basic Deluxe 2,000 dlh 8,000 dlh 5 setups 10,000 dlh 24,000 dlh 15 setups Total activity-base usage 12,000 dlh 32,000 dlh 20 setups Each product is budgeted for 2,500 units of production for the year. What is the activity-based factory overhead per unit for the Deluxe kayak? a. $154.54 b. $100.00 c. $41.80 d. $158.20
The total factory overhead for Magnum Corporation is budgeted for the year at $500,000. This is divided into three activity pools: Fabrication $246,000 Assembly $144,000 Setup $110,000 Magnum manufactures two types of kayaks: Basic and Deluxe. The activity-based usage quantity for each project by activity is as follows: Fabrication Assembly Setup Basic Deluxe 2,000 dlh 8,000 dlh 5 setups 10,000 dlh 24,000 dlh 15 setups Total activity-base usage 12,000 dlh 32,000 dlh 20 setups Each product is budgeted for 2,500 units of production for the year. What is the activity-based factory overhead per unit for the Deluxe kayak? a. $154.54 b. $100.00 c. $41.80 d. $158.20
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Transcribed Image Text:The total factory overhead for Magnum Corporation is budgeted for the year at $500,000. This is divided into three activity pools:
Fabrication $246,000
Assembly $144,000
Setup
$110,000
Magnum manufactures two types of kayaks: Basic and Deluxe. The activity-based usage quantity for each project by activity is as follows:
Fabrication Assembly Setup
Basic
Deluxe
2,000 dlh
8,000 dlh 5 setups
10,000 dlh 24,000 dlh 15 setups
Total activity-base usage 12,000 dlh
32,000 dlh 20 setups
Each product is budgeted for 2,500 units of production for the year.
What is the activity-based factory overhead per unit for the Deluxe kayak?
a. $154.54
b. $100.00
c. $41.80
d. $158.20
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