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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:
Fabrication Assembly Setup Inspection
Speedboat 2,000 dlh 1,000 dlh 300 setups 1,100 inspections
Bass boat 3,000 dlh 3,000 dlh 400 setups 1,500 inspections
Each product is budgeted for 250 units of production for the year.
a. Determine the activity rates for each activity.
b. Determine(A) the activity rates for each activity and (B) the activity based factory overhead per unit for each product.

Respuesta :

anthougo

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