Activity-Based Costing: Factory Overhead CostsThe total factory overhead for Bardot Marine Company is budgeted for the year at $1,503,200, divided into four activities: fabrication,$756,000; assembly, $272,000; setup, $259,200; and inspection, $216,000. Bardot Marine manufactures two types of boats: speedboatsand bass boats. The activity-base usage quantities for each product by each activity are as follows:InspectionSpeedboatBass boatFabricationAssemblySetupSpeedboatEach product is budgeted for 3,500 units of production for the year.a. Determine the activity rates for each activity.Bass boatFabrication9,000 dih$Feedback27,00036,000 dih21BAssembly25,500 dih8,50034,000 dih480Setupper setup65 setups475540 setups✓per direct labor hour✓ per direct labor hourInspection $240✔ per inspectionb. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar.183 X per unit301 ✔ per unit113 inspections787900 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 $1,503,200, divided into four activities: fabrication,$756,000; assembly, $272,000; setup, $259,200; and inspection, $216,

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The total factory overhead for Bardot Marine Company is budgeted for the year at $1,503,200, divided into four activities: fabrication, $756,000; assembly, $272,000; setup, $259,200; and inspection, $216,000. 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: Inspection Speedboat Bass boat Fabrication Assembly Setup Inspection Speedboat $ Bass boat Fabrication 9,000 dih Each product is budgeted for 3,500 units of production for the year. a. Determine the activity rates for each activity. 27,000 36,000 dih $ 21 8 Assembly 25,500 dih 8,500 34,000 dih 480 Setup 65 setups ✓ per setup 475 540 setups per direct labor hour per direct labor hour 240 per inspection b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar. 183 X per unit 301 per unit 113 inspections 787 900 inspections

The total factory overhead for Bardot Marine Company is budgeted for the year at $1,503,200, divided into four activities: fabrication, $756,000; assembly, $272,000; setup, $259,200; and inspection, $216,000. 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: Inspection Speedboat Bass boat Fabrication Assembly Setup Inspection Speedboat $ Bass boat Fabrication 9,000 dih Each product is budgeted for 3,500 units of production for the year. a. Determine the activity rates for each activity. 27,000 36,000 dih $ 21 8 Assembly 25,500 dih 8,500 34,000 dih 480 Setup 65 setups ✓ per setup 475 540 setups per direct labor hour per direct labor hour 240 per inspection b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar. 183 X per unit 301 per unit 113 inspections 787 900 inspections

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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