Question

The total factory overhead for Bardot Marine Company is budgeted for the year at $600,000, divided into four activities:

Answer 1

Answer:

Bardot Marine Company

a. Activity rates for each activity:

Fabrication = $40.80/dlh

Assembly = $26.25/dlh

Setup = $222.86/dlh

Inspection = $51.92/dlh

b. The activity based factory overhead per unit for each product:

                                              Speed        Bass

                                              Boats        Boats

Factory Overhead per unit  $927.25  $1472.70

Explanation:

a) Data and Calculations:

Activities         Budgeted     Speed        Bass

                      Overheads    Boats        Boats          Total           Activity rates

Fabrication    $204,000     2,000 dlh   3,000 dlh  5,000 dlh   $40.80/dlh

Assembly       $105,000      1,000 dlh   3,000 dlh  4,000 dlh   $26.25/dlh

Setup             $156,000         300 dlh      400 dlh     700 dlh   $222.86/dlh

Inspection     $135,000        1,100 dlh    1,500 dlh  2,600 dlh  $51.92/dlh

Total costs   $600,000

Units budgeted                      250            250           500 units

                                              Speed        Bass

                                              Boats        Boats

Fabrication = $40.80/dlh   $81,600      $122,400

Assembly = $26.25/dlh      26,250          78,750

Setup = $222.86/dlh          66,850           89,144

Inspection = $51.92/dlh        57,112          77,880

Total assigned costs        $231,812      $368,174

Units budgeted                     250              250

Overhead per unit            $927.25      $1472.70