Coral Marine Company has total estimated factory overhead for the year$2,055,000, divided into four activities: fabrication, $825,000; assembly, $270,000; setup, $536,000; and inspection, $424,000. Coralmanufactures two types of boats: a speedboat and a bass boat. The activity-base usage quantities for each product by each activity are as follows:FabricationAssemblySetupInspectionSpeedboat1,200 dlh1,800 dlh60 setups600 inspectionsBass boat1,8001,2001002003,000 dlh3,000 dlh160 setups800 inspectionsEach product is budgeted for 200 units of production for the year.a. Determine the activity rates for each activity.Fabricationper dlhAssemblyper dlhSetupper setupInspectionper inspectionb. Determine the factory overhead cost per unit for each product, using activity-based costing.SpeedboatBass boat$

Name: Coral Marine Company has total estimated factory overhead for the yea
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Description: Coral Marine Company has total estimated factory overhead for the year$2,055,000, divided into four activities: fabrication, $825,000; assembly, $270,000; setup, $536,000; and inspection, $424,000. Coralmanufactures two types of boats: a speedboat a

a Activity rates for each activity Activity. Overhead($) Activity Activity rates…

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al Marine Company has total estimated factory overhead for the year of $2,055,000, divided into four activities: fabrication, $825,000; assembly, $270,000; setup, $536,000; and inspection, $424,000. Coral nufactures two types of boats: a speedboat and a bass boat. The activity-base usage quantities for each product by each activity are as follows: Fabrication Assembly Setup Inspection eedboat 1,200 dlh 1,800 dih 60 setups 600 inspections ss boat 1,800 1,200 100 200 3,000 dlh 3,000 dlh 160 setups 800 inspections h product is budgeted for 200 units of production for the year. Determine the activity rates for each activity. prication per dlh sembly $4 per dih Eup per setup pection per inspection Determine the factory overhead cost per unit for each product, using activity-based costing. eedboat ss boat

al Marine Company has total estimated factory overhead for the year of $2,055,000, divided into four activities: fabrication, $825,000; assembly, $270,000; setup, $536,000; and inspection, $424,000. Coral nufactures two types of boats: a speedboat and a bass boat. The activity-base usage quantities for each product by each activity are as follows: Fabrication Assembly Setup Inspection eedboat 1,200 dlh 1,800 dih 60 setups 600 inspections ss boat 1,800 1,200 100 200 3,000 dlh 3,000 dlh 160 setups 800 inspections h product is budgeted for 200 units of production for the year. Determine the activity rates for each activity. prication per dlh sembly $4 per dih Eup per setup pection per inspection Determine the factory overhead cost per unit for each product, using activity-based costing. eedboat ss boat

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 27E: Plata Company has identified the following overhead activities, costs, and activity drivers for the...

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