Show Me How Activity-Based Costing: Factory Overhead Costs The total factory ove
ID: 2522579 • Letter: S
Question
Show Me How Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgete for the year at $1,110,800, divided into four activities: abrication, 5448,000, assemoly, $210,0, 244,800; and inspection, $208,000. Bardot Marine manufactures activity are as follows: two types of boats: speedboats and bass boats. The activity-base usage quantities for each product by each Fabrication Assembly Setup Inspection 8,000 dh 26,250 dh 58 setups 100 Inspections 24,000 32,000 dh 35,000 dth 480 setups800 inspections Bass boat 8,750 42 Each product is budgeted for 7,000 units of production for the year. a. Determine the activity rates for each activity 14.00 per direct labor hour Fabrication t_1 Assembly6.00per direct labor hour Setup510.0persetup Inspection 260.00spection Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar 4644 X es boat 112 35x per un Previcus 8 9 0 0Explanation / Answer
a) Activity Cost Pool Overhead cost Activity (# units) Units Activity rate Fabrication 448000 32000 dlh $ 14 Assembly 210000 35000 dlh $ 6 Set up 244800 480 Set ups $ 510 Inspection 208000 800 Inspections $ 260 1110800 2) Activity Cost Pool Speed Boat Bass Boat Activity Units Activity Rate Overhead assigned Activity Units Activity Rate Overhead assigned Fabrication 8000 $ 14 $ 1,12,000 24000 $ 14 $ 3,36,000 Assembly 26250 $ 6 $ 1,57,500 8750 $ 6 $ 52,500 Set up 58 $ 510 $ 29,580 422 $ 510 $ 2,15,220 Inspection 100 $ 260 $ 26,000 700 $ 260 $ 1,82,000 $ 3,25,080 $ 7,85,720 Units budgeted 7000 7000 Activity based factory overhead per unit $ 46 $ 112