Business, 06.03.2021 03:40 robert7248

The total factory overhead for Bardot Marine Company is budgeted for the year at $820,850, divided into four activities: fabrication, $441,000; assembly, $152,000; setup, $122,850; and inspection, $105,000. 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 5,250 dlh 14,250 dlh 38 setups 66 inspections
Bass boat 15,750 4,750 277 459
21,000 dlh 19,000 dlh 315 setups 525 inspect

Each product is budgeted for 5,000 units of production for the year.

a. Determine the activity rates for each activity.
b. Determine the activity-based factory overhead per unit for each product.

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Answer from: mmaglaya1

Bardot Marine Company

a. Activity rates for each activity:

Fabrication = $21

Assembly = $8

Setup= $390

Inspection = $200

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

Speedboat = $40.45

Bass Boat = $113.72

Explanation:

a) Data and Calculations:

Budgeted total factory overhead = $820,850

Fabrication, $441,000

Assembly, $152,000

Setup, $122,850

Inspection, $105,000

Total $820,850

Activity-base Usage Quantities:

Speedboat Bass Boat Total

Fabrication 5,250 dlh 15,750 dlh 21,000

Assembly 14,250 dlh 4,750 dlh 19,000

Setup 38 setups 277 setups 315

Inspections 66 459 525

Budgeted units of

production 5,000 5,000 10,000

a) Activity rates for each activity:

Costs Usage Rates

Fabrication, $441,000 21,000 $21

Assembly, $152,000 19,000 $8

Setup, $122,850 315 $390

Inspection, $105,000 525 $200

b) Speedboat Bass Boat

Fabrication $110,250 ($21*5,250) $330,750 ($21*15,750)

Assembly 114,000 ($8*14,250) 38,000 ($8*4,750)

Setup 14,820 ($390*38) 108,030 ($390*277)

Inspections 13,200 ($200*66) 91,800 ($200*459)

Total overhead costs $252,270 $568,580

Budgeted units of

production 5,000 5,000

Per unit overhead $40.45 $113.72

Answer from: Quest

answer; limited pay life;

Answer from: Quest

agriculture and oil. natural resources, industry.

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