Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,275,600, divided into four activities: fabrication, $646,000; assembly, $280,000; setup, $188,100; and inspection, $161,500. 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: Fabrication Assembly Setup Inspection Speedboat 9,500 dlh 30,000 dlh 68 setups 119 inspections Bass boat 28,500 10,000 502 831 38,000 dlh 40,000 dlh 570 setups 950 inspections Each product is budgeted for 4,500 units of production for the year. a. Determine the activity rates for each activity. Fabrication 646,000 X per direct labor hour Assembly $ 280,000 X per direct labor hour Setup $ 188,100 X per setup Inspection $ 161,500 X per inspection b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar. Speedboat 92 V per unit Bass boat 191 V per unit
Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,275,600, divided into four activities: fabrication, $646,000; assembly, $280,000; setup, $188,100; and inspection, $161,500. 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: Fabrication Assembly Setup Inspection Speedboat 9,500 dlh 30,000 dlh 68 setups 119 inspections Bass boat 28,500 10,000 502 831 38,000 dlh 40,000 dlh 570 setups 950 inspections Each product is budgeted for 4,500 units of production for the year. a. Determine the activity rates for each activity. Fabrication 646,000 X per direct labor hour Assembly $ 280,000 X per direct labor hour Setup $ 188,100 X per setup Inspection $ 161,500 X per inspection b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar. Speedboat 92 V per unit Bass boat 191 V per unit
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 3BE: Activity-based costing: factory overhead costs The total factory overhead for Bardot Marine Company...
Related questions
Question
100%
Can anyone help me fix these problems?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College