Answer:
Bardot Marine Company
a. Activity rates for each activity:
Fabrication = $21
Assembly = $8
Setup= $390
Inspection = $200
b. The activity-based factory overhead per unit for each product:
Speedboat = $40.45
Bass Boat = $113.72
Explanation:
a) Data and Calculations:
Budgeted total factory overhead = $820,850
Fabrication, $441,000
Assembly, $152,000
Setup, $122,850
Inspection, $105,000
Total $820,850
Activity-base Usage Quantities:
Speedboat Bass Boat Total
Fabrication 5,250 dlh 15,750 dlh 21,000
Assembly 14,250 dlh 4,750 dlh 19,000
Setup 38 setups 277 setups 315
Inspections 66 459 525
Budgeted units of
production 5,000 5,000 10,000
a) Activity rates for each activity:
Costs Usage Rates
Fabrication, $441,000 21,000 $21
Assembly, $152,000 19,000 $8
Setup, $122,850 315 $390
Inspection, $105,000 525 $200
b) Speedboat Bass Boat
Fabrication $110,250 ($21*5,250) $330,750 ($21*15,750)
Assembly 114,000 ($8*14,250) 38,000 ($8*4,750)
Setup 14,820 ($390*38) 108,030 ($390*277)
Inspections 13,200 ($200*66) 91,800 ($200*459)
Total overhead costs $252,270 $568,580
Budgeted units of
production 5,000 5,000
Per unit overhead $40.45 $113.72
