In: Accounting
The total factory overhead for Bardot Marine Company is budgeted for the year at $1,078,500, divided into four activities: fabrication, $490,000; assembly, $228,000; setup, $194,250; and inspection, $166,250. 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 | 8,750 | dlh | 28,500 | dlh | 63 | setups | 109 | inspections |
Bass boat | 26,250 | 9,500 | 462 | 766 | ||||
35,000 | dlh | 38,000 | dlh | 525 | setups | 875 | inspections |
Each product is budgeted for 6,500 units of production for the year.
a. Determine the activity rates for each activity.
Fabrication | $ per direct labor hour |
Assembly | $ per direct labor hour |
Setup | $ per setup |
Inspection | $ per inspection |
b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar.
Speedboat | $ per unit |
Bass boat | $ per unit |
The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.