Question

The total factory overhead for Bardot Marine Company is budgeted for the year at $1,015,100, divided...

The total factory overhead for Bardot Marine Company is budgeted for the year at $1,015,100, divided into four activities: fabrication, $513,000; assembly, $224,000; setup, $149,850; and inspection, $128,250. 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 6,750 dlh 21,000 dlh 49 setups 84 inspections
Bass boat 20,250 7,000 356 591
27,000 dlh 28,000 dlh 405 setups 675 inspections

Each product is budgeted for 7,000 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

Requirement:A

Fabrication $          19
Assembly $             8
Setup $        370
Inspection $        190

Working:

Fabrication 513000/27000
Assembly 224000/28000
Setup 149850/405
Inspection 128250/675

Requirement:B

Speedboat $    47.19
Bass boat $    97.82

Working:

Speedboat ((6750*19)+(21000*8)+(49*370)+(84*190))/7000
Bass boat ((20250*19)+(7000*8)+(356*370)+(591*190))/7000
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