Homework SourseActivityBased Costing Factory Overhead Costs The total facto
Activity-Based Costing: Factory Overhead Costs
The total factory overhead for Bardot Marine Company is budgeted for the year at $726,000, divided into four activity pools: fabrication,, $352,000; assembly, $132,000; setup, $132,000; and inspection, $110,000. 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:
Each product is budgeted for 3,500 units of production for the year.
a. Determine the activity rates for each activity.
b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar.
| Fabrication | Assembly | Setup | Inspection | |||||
| Speedboat | 5,500 | dlh | 16,500 | dlh | 40 | setups | 69 | inspections |
| Bass boat | 16,500 | 5,500 | 290 | 481 | ||||
| 22,000 | dlh | 22,000 | dlh | 330 | setups | 550 | inspections |
Solution
a. The correct answer is:
Note :
b.
The correct answer is :
Note :
1.
2.
| Fabrication | $ 16 per direct labor hour |
| Assembly | $ 6 per direct labor hour |
| Setup | $ 400 per setup |
| Inspection | $ 200 per inspection |
