Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $937,950, divided into four activities: fabrication, $435,000; assembly $168,000; setup, $182,700; and inspection, $152,250. 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 7,250 dlh 21,000 dlh 52 setups 91 inspections Bass boat 21,750 7,000 383 634 29,000 dlh 28,000 dlh 435 setups 725 inspections Each product is budgeted for 4,500 units of production for the year. a. Determine the activity rates for each activity. Fabrication 15 per direct labor hour Assembly 6 per direct labor hour Setup 420 per setup Inspection 210 per inspection

Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $937,950, divided into four activities: fabrication, $435,000; assembly $168,000; setup, $182,700; and inspection, $152,250. 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 7,250 dlh 21,000 dlh 52 setups 91 inspections Bass boat 21,750 7,000 383 634 29,000 dlh 28,000 dlh 435 setups 725 inspections Each product is budgeted for 4,500 units of production for the year. a. Determine the activity rates for each activity. Fabrication 15 per direct labor hour Assembly 6 per direct labor hour Setup 420 per setup Inspection 210 per inspection

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Description: Activity-Based Costing: Factory Overhead CostsThe total factory overhead for Bardot Marine Company is budgeted for the year at $937,950, divided into four activities: fabrication, $435,000; assembly,$168,000; setup, $182,700; and inspection, $152,25

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 3BE: Activity-based costing: factory overhead costs The total factory overhead for Bardot Marine Company...

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