The total factory overhead for Bardot Marine Company is budgeted for the year at $1,179,500, divided into four activities: fabrication, $630,000; assembly, $224,000; setup, $175,500; and inspection, $150,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The activity-base usage quantities for each product by each activity are as follows:
Each product is budgeted for 7,500 units of production for the year.
a. Determine the activity rates for each activity.
|Fabrication||$ 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|
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