Question
The total factory overhead for Bardot Marine Company is budgeted for the year at $1,466,800, divided...
The total factory overhead for Bardot Marine Company is budgeted for the year at $1,466,800, divided into four activities: fabrication, $780,000; assembly, $328,000; setup, $193,050; and inspection, $165,750. 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 | 9,750 | dlh | 30,750 | dlh | 70 | setups | 122 | inspections |
| Bass boat | 29,250 | 10,250 | 515 | 853 | ||||
| 39,000 | dlh | 41,000 | dlh | 585 | setups | 975 | inspections | |
Each product is budgeted for 6,000 units of production for the year.
a. Determine the activity rates for each activity.
| Fabrication | |
| Assembly | |
| Setup | |
| Inspection |
b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar.
| Speedboat | |
| Bass boat |
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