Activity-Based Costing: Factory Overhead CostsThe total factory overhead for Bardot Marine Company is budgeted for the year at $1,207,500, divided into four activities: fabrication, $595,000; assembly, $266,000; setup, $189,000; and inspection, $157,500. Bardot Marine manufactures twotypes of boats: speedboats and bass boats. The activity-base usage quantities for each product by each activity are as follows:InspectionSpeedboatBass boatFabricationAssembly462525 setupsEach product is budgeted for 7,500 units of production for the year.a. Determine the activity rates for each activity.17 per direct labor hour7 per direct labor hourSetupInspectionFabrication8,750 dlh$$SpeedboatBass boatAssembly Setup28,500 dlh9,50038,000 dlh26,25035,000 dlh63 setups360 per setup180 per inspectionb. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar.$per unit$per unit109 inspections766875 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 $1,207,500, divided into four activities: fabrication, $595,000; assembly, $266,000; setup, $189,000; and inspection, $157

Activity-based costing is used to distribute the unallocated overhead on the basis of activity.…

Business

Accounting

Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,207,500, divided into four activities: fabrication, $595,000; assembly, $266,000; setup, $189,000; and inspection, $157,500. 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: Assembly Setup Inspection 28,500 dlh 9,500 38,000 dlh Speedboat Bass boat 63 setups 462 525 setups Each product is budgeted for 7,500 units of production for the year. a. Determine the activity rates for each activity. 17 per direct labor hour $ 7 per direct labor hour $ 360 per setup $ 180 per inspection b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar. per unit per unit Fabrication Assembly Setup Inspection Fabrication 8,750 dlh 26,250 35,000 dih Speedboat Bass boat 109 inspections 766 875 inspections

Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,207,500, divided into four activities: fabrication, $595,000; assembly, $266,000; setup, $189,000; and inspection, $157,500. 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: Assembly Setup Inspection 28,500 dlh 9,500 38,000 dlh Speedboat Bass boat 63 setups 462 525 setups Each product is budgeted for 7,500 units of production for the year. a. Determine the activity rates for each activity. 17 per direct labor hour $ 7 per direct labor hour $ 360 per setup $ 180 per inspection b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar. per unit per unit Fabrication Assembly Setup Inspection Fabrication 8,750 dlh 26,250 35,000 dih Speedboat Bass boat 109 inspections 766 875 inspections

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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