Activity-based costing:factory overhead costs The total factory overhead for Cypress Marine Company is budgeted for the year at $810,150, divided into four activities: fabrication, $378,000, assembly, $150,000, setup, $153,900, and inspection, $128,250. Cypress 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 18,750 dlh 6,250 25,000 dlh 20,250 27,000 dlh Each product is budgeted for 3,500 units of production for the year. a. Determine the activity rates for each activity. 14 ✔ per dih 6 per dih Speedboat Bass boat Fabrication Assembly Setup Inspection Fabrication Speedboats $ Bass Boats $ $ 6,750 dlh $ 380 per setup 190✔per inspection b. Determine the activity-based factory overhead per unit for each product. Round all per unit answers to the nearest dollar. Setup 49 setups 356 405 setups 67 X per unit 150 X per unit Inspection 84 inspections 591 675 inspections

Activity Base Entry Dining Total Machine hours 5,320 4,710 10,030 Direct labor hours 4,570 6,860 11,430 Number of inspections 1,940 610 2,550 Number of setups 310 70 380 Number of loads 700 190 890 Units produced 10,600 5,300 15,900 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Activity Activity Rate Casting per machine hour Assembly per direct labor hour Inspecting 24 per inspection Setup per setup Materials handling per load b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with each product. Round the per unit amounts to the nearest cent. Product Total Activity Cost Activity Cost Per Unit Entry Lighting Fixtures Dining Room Lighting Fixtures

Activity-Based Costing Zeus Industries manufactures two types of electrical power units, custom and standard, which involve four factory overhead activities—production setup, procurement, quality control, and materials management. An activity analysis of the overhead revealed the following estimated activity costs and activity bases for these activities: Activity Activity Cost Activity Base Production setup $ 44,000   Number of setups Procurement 13,500   Number of purchase orders (PO) Quality control 97,500   Number of inspections Materials management 84,000   Number of components Total $239,000     The activity-base usage quantities for each product are as follows:   Setups PurchaseOrders Inspections Components Unit Volume Custom 290   760   1,200   500   2,000   Standard 110   140   300   200   2,000   Total 400   900   1,500   700   4,000   a.  Determine an activity rate for each activity. Activity Rates Production Setup Procurement Quality Control…

Activity Rates and Product Costs using Activity-Based Costing Garfield Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Activity BudgetedActivity Cost Activity Base Casting $560,000   Machine hours Assembly 75,000   Direct labor hours Inspecting 30,000   Number of inspections Setup 18,750   Number of setups Materials handling 14,000   Number of loads   Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced follow: Activity Base Entry Dining Total Machine hours 7,500   12,500   20,000   Direct labor hours 2,000   3,000   5,000   Number of inspections 500   250   750   Number of setups 150   100   250   Number of loads 400   300   700   Units produced 5,000   2,500   7,500     a.…