Activity-Based Costing: Factory Overhead Costs
The total factory overhead for Bardot Marine Company is budgetedfor the year at $1,314,700, divided into four activities:fabrication, $492,000; assembly, $220,000; setup, $325,950; andinspection, $276,750. Bardot Marine manufactures two types ofboats: speedboats and bass boats. The activity-base usagequantities for each product by each activity are as follows:
| Fabrication | Assembly | Setup | Inspection |
| Speedboat | 10,250 | dlh | 33,000 | dlh | 74 | setups | 128 | inspections |
| Bass boat | 30,750 | | 11,000 | | 541 | | 897 | |
| 41,000 | dlh | 44,000 | dlh | 615 | setups | 1025 | inspections |
Each product is budgeted for 3,500 units of production for theyear.
a. Determine the activity rates for eachactivity.
| Fabrication | $ per direct labor hour |
| Assembly | $ per direct labor hour |
| Setup | $ per setup |
| Inspection | $ per inspection |
b. Determine the activity-based factoryoverhead per unit for each product. Round to the nearest wholedollar.
| Speedboat | $ per unit |
| Bass boat | $ per unit |
