The total factory overhead for Magnum Corporation is budgeted for the year at $500,000. This is divided into three activity pools: fabrication, $246,000; assembly, $144,000, and setup, $110,000. Magnum manufactures two types of kayaks: Basic and Deluxe. The activity-based usage quantities for each project by activity are as follows: Fabrication Assembly Setup Basic 2,000 dlh 8,000 dlh 5 setups Deluxe 10,000 dlh 24,000 dlh 15 setups Total activity-base usage 12,000 dlh 32,000 dlh 20 setups Each product is budgeted for 2,500 units of production for the year. What is the activity-based factory overhead per unit for the Deluxe kayak? a.$41.80 b.$158.20 c.$100.00 d.$154.54
The total factory overhead for Magnum Corporation is budgeted for the year at $500,000. This is divided into three activity pools: fabrication, $246,000; assembly, $144,000, and setup, $110,000. Magnum manufactures two types of kayaks: Basic and Deluxe. The activity-based usage quantities for each project by activity are as follows: Fabrication Assembly Setup Basic 2,000 dlh 8,000 dlh 5 setups Deluxe 10,000 dlh 24,000 dlh 15 setups Total activity-base usage 12,000 dlh 32,000 dlh 20 setups Each product is budgeted for 2,500 units of production for the year. What is the activity-based factory overhead per unit for the Deluxe kayak? a.$41.80 b.$158.20 c.$100.00 d.$154.54
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...
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The total factory overhead for Magnum Corporation is budgeted for the year at $500,000. This is divided into three activity pools: fabrication, $246,000; assembly, $144,000, and setup, $110,000. Magnum manufactures two types of kayaks: Basic and Deluxe. The activity-based usage quantities for each project by activity are as follows:
Each product is budgeted for 2,500 units of production for the year.
What is the activity-based factory overhead per unit for the Deluxe kayak?
| Fabrication | Assembly | Setup | ||||
| Basic | 2,000 dlh | 8,000 dlh | 5 setups | |||
| Deluxe | 10,000 dlh | 24,000 dlh | 15 setups | |||
| Total activity-base usage | 12,000 dlh | 32,000 dlh | 20 setups |
Each product is budgeted for 2,500 units of production for the year.
What is the activity-based factory overhead per unit for the Deluxe kayak?
a.$41.80
b.$158.20
c.$100.00
d.$154.54
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