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

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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