Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the...

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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

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Solution Part 1 Activity Rate for each activity Activity Cost Pool Estimated Overhead A Estimated Use of Cost Drivers B ActivityBased OH Rate A B Fabrication 492000 41000 Direct labor hour 1200 per direct labor See Answer

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	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

Fabrication	$ per direct labor hour
Assembly	$ per direct labor hour
Setup	$ per setup
Inspection	$ per inspection