Question

The total factory overhead for Bardot Marine Company is budgeted for the year at $1,334,300, divided...

The total factory overhead for Bardot Marine Company is budgeted for the year at $1,334,300, divided into four activities: fabrication, $533,000; assembly, $215,000; setup, $319,800; and inspection, $266,500. 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 10,250 dlh 32,250 dlh 74 setups 128 inspections
Bass boat 30,750 10,750 541 897
41,000 dlh 43,000 dlh 615 setups 1,025 inspections

Each product is budgeted for 4,000 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

Homework Answers

Answer #1

a. Determine the activity rates for each activity.

Fabrication (533000/41000) = $13 per direct labor hour
Assembly (215000/43000) = $5 per direct labor hour
Setup (319800/615) = $520 per setup
Inspection (266500/1025) = $260 per inspection

1) calculate per unit

Speedboat Bass boat
Fabrication 133250 399750
Assembly 161250 53750
Setup 38480 281320
Inspection 33280 233220
Total 366260 968040
Unit 4000 4000
Unit cost 91.57 242.01
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