FINANCIAL ACCOUNTING
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ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Activity-Based Costing: Factory Overhead Costs
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
Speedboat
Each product is budgeted for 3,500 units of production for the year.
a. Determine the activity rates for each activity.
Bass boat
Fabrication
9,000 dih
$
Feedback
27,000
36,000 dih
21
B
Assembly
25,500 dih
8,500
34,000 dih
480
Setup
per setup
65 setups
475
540 setups
✓per direct labor hour
✓ per direct labor hour
Inspection $
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
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