Activity-Based Costing: Factory Overhead CostsThe total factory overhead for Bardot Marine Company is budgeted for the year at $800,200, divided into four activities: fabrication, $391,000; assembly, $147,000; setup, $141,450; and inspection, $120,750. Bardot Marine manufactures two types of boats: speedboats and bass boats. The activity-base usage quantities for each product by each activity are as follows: ImageEach product is budgeted for 4,500 units of production for the year.a. Determine the activity rates for each activity.Fabrication$ per direct labor hourAssembly$ per direct labor hourSetup$ per setupInspection$ per inspectionb. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar.Speedboat$ per unitBass boat$ per unit FabricationAssemblySetupInspectionSpeedboat15,750 dlh5,2505,750 dlh41 setups72 inspectionsBass boat30417,25050323,000 dlh21,000 dlh345 setups575 inspectionsEach product is budgeted for 4,500 units of production for the year.

Name: Activity-Based Costing: Factory Overhead CostsThe total factory overhe
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Description: Activity-Based Costing: Factory Overhead CostsThe total factory overhead for Bardot Marine Company is budgeted for the year at $800,200, divided into four activities: fabrication, $391,000; assembly, $147,000; setup, $141,450; and inspection, $120,75

a) Activity rate for each activity: Particulars Amount $ Activity driver Activity rate…

Business

Accounting

Fabrication Assembly Setup Inspection Speedboat 15,750 dlh 5,250 5,750 dlh 41 setups 72 inspections Bass boat 304 17,250 503 23,000 dlh 21,000 dlh 345 setups 575 inspections Each product is budgeted for 4,500 units of production for the year.

Fabrication Assembly Setup Inspection Speedboat 15,750 dlh 5,250 5,750 dlh 41 setups 72 inspections Bass boat 304 17,250 503 23,000 dlh 21,000 dlh 345 setups 575 inspections Each product is budgeted for 4,500 units of production for the year.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter13: Budgeting And Standard Costs

Section: Chapter Questions

Problem 13.6.3P

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