Bundle: Managerial Accounting, Loose-leaf Version, 14th - Book Only
14th Edition
ISBN: 9781337541398
Author: Carl Warren; James M. Reeve; Jonathan Duchac
Publisher: Cengage Learning
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Chapter 4, Problem 3BE
Activity-based
The total factory overhead for Bardot Marine Company is budgeted for the year at $600,000, divided into four activities: fabrication, $204,000; assembly, $105,000; setup, $156,000; and inspection, $135,000. 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 250 units of production for the year. Determine (A) the activity rates for each activity and (B) the activity-based factory overhead per unit for each product.
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Activity- based costing: factory overhead costs
The total factory overhead for Bardot Marine Company is budgeted for the year at$600,000,divided into four activities:fabrication,$204,000;assembly,$105,000;setip,$156,000;and inspection,$135,000.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 250 units of production for the year.Determine(A) the activity rates for each activity and (B) the activity.based factory overhead oer unit for each product.
Activity-Based Costing: Factory Overhead Costs
The 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: Image
Each product is budgeted for 4,500 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
Activity-Based Costing: Factory Overhead Costs
The total factory overhead for Bardot Marine Company is budgeted for the year at $937,950, divided into four activities: fabrication, $435,000; assembly,
$168,000; setup, $182,700; and inspection, $152,250. 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
7,250 dlh
21,000 dlh
52 setups
91 inspections
Bass boat
21,750
7,000
383
634
29,000 dlh
28,000 dlh
435 setups
725 inspections
Each product is budgeted for 4,500 units of production for the year.
a. Determine the activity rates for each activity.
Fabrication
15 per direct labor hour
Assembly
6 per direct labor hour
Setup
420 per setup
Inspection
210 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
24
per unit
Chapter 4 Solutions
Bundle: Managerial Accounting, Loose-leaf Version, 14th - Book Only
Ch. 4 - Why would management be concerned about the...Ch. 4 - Why would a manufacturing company with multiple...Ch. 4 - Prob. 3DQCh. 4 - Prob. 4DQCh. 4 - How does activity-based costing differ from the...Ch. 4 - Prob. 6DQCh. 4 - Prob. 7DQCh. 4 - Under what circumstances might the activity-based...Ch. 4 - Prob. 9DQCh. 4 - Prob. 10DQ
Ch. 4 - Single plantwide factory overhead rate The total...Ch. 4 - Multiple production department factory overhead...Ch. 4 - Activity-based costing: factory overhead costs The...Ch. 4 - Activity-based costing: selling and administrative...Ch. 4 - Activity-based costing for a service business...Ch. 4 - Prob. 1ECh. 4 - Prob. 2ECh. 4 - Prob. 3ECh. 4 - Prob. 4ECh. 4 - Multiple production department factory overhead...Ch. 4 - Prob. 6ECh. 4 - Single plantwide and multiple production...Ch. 4 - Prob. 8ECh. 4 - Prob. 9ECh. 4 - Prob. 10ECh. 4 - Prob. 11ECh. 4 - Activity cost pools, activity rates, and product...Ch. 4 - Prob. 13ECh. 4 - Prob. 14ECh. 4 - Activity-based costing and product cost distortion...Ch. 4 - Prob. 16ECh. 4 - Evaluating selling and administrative cost...Ch. 4 - Prob. 18ECh. 4 - Prob. 19ECh. 4 - Activity-based costing for a service company...Ch. 4 - Prob. 21ECh. 4 - Prob. 1PACh. 4 - Multiple production department factory overhead...Ch. 4 - Activity-based and department rate product costing...Ch. 4 - Activity-based product costing Mello Manufacturing...Ch. 4 - Prob. 5PACh. 4 - Product costing and decision analysis for a...Ch. 4 - Single plantwide factory overhead rate Spotted Cow...Ch. 4 - Multiple production department factory overhead...Ch. 4 - Activity-based department rate product costing and...Ch. 4 - Activity-based product costing Sweet Sugar Company...Ch. 4 - Prob. 5PBCh. 4 - Prob. 6PBCh. 4 - Prob. 1ADMCh. 4 - Prob. 2ADMCh. 4 - Production run size and activity improvement...Ch. 4 - Prob. 4ADMCh. 4 - Ethics in Action The controller of Tri Con Global...Ch. 4 - Communication The controller of New Wave Sounds...
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