Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,211,600, divided into four activities: fabrication, $660,000; assembly, $248,000; setup, $163,350; and inspection, $140,250. 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 8,250 dlh 23,250 dlh 59 setups 103 inspections Bass boat 24,750 7,750 436 722 33,000 dlh 31,000 dlh 495 setups 825 inspections Each product is budgeted for 4,500 units of production for the year. a. Determine the activity rates for each activity. Fabrication $ per direct labor hour Assembly $ per direct labor hour Setup $ per setup Inspection $ per inspection b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar. Speedboat $ per unit Bass boat $ per unit
Solution a & b:
Determination of overhead rate and allocated overheads to product lines and overheaed cost per unit- Activity based costing | ||||||||
Activity | Estimated Overhead Cost | Activity Base | Usage of Activity Base | Activity Rate | Speed Boats | Bass boats | ||
Usage | Allocated Costs | Usage | Allocated Costs | |||||
Fabrication | $660,000.00 | Fabrication DLH | 33000 | $20.00 | 8250 | $165,000 | 24750 | $495,000 |
Assembly | $248,000.00 | Assembly DLH | 31000 | $8.00 | 23250 | $186,000 | 7750 | $62,000 |
Setup | $163,350.00 | Nos of setup | 495 | $330.00 | 59 | $19,470 | 436 | $143,880 |
Inspection | $140,250.00 | Nos of inspections | 825 | $170.00 | 103 | $17,510 | 722 | $122,740 |
Total | $1,211,600.00 | $387,980 | $823,620 | |||||
Nos of units | 4500 | 4500 | ||||||
Overhead cost per unit | $86.22 | $183.03 |
Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for...
Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $762,000, divided into four activities: fabrication, $312,000; assembly, $120,000; setup, $180,000; and inspection, $150,000. 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 6,000 dlh 18,000 dlh 43 setups 75 inspections Bass boat 18,000 6,000 317 525 24,000 dlh 24,000 dlh...
Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,496,400, divided into four activities: fabrication, $814,000; assembly, $342,000; setup, $183,150; and inspection, $157,250. 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 9,250 dlh 28,500 dlh 67 setups 116 inspections Bass boat 27,750 9,500 488 809 37,000 dlh 38,000 dlh...
Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,345,650, divided into four activities: fabrication, $627,000; assembly, $288,000; setup, $232,650; and inspection, $198,000. 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 8,250 dlh 27,000 dlh 59 setups 103 inspections Bass boat 24,750 9,000 436 722 33,000 dlh 36,000 dlh...
Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $909,050, divided into four activities: fabrication, $396,000; assembly, $155,000; setup, $193,050; and inspection, $165,000. 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 8,250 dlh 23,250 dlh 59 setups ...
Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,157,000, divided into four activities: fabrication, $600,000; assembly, $248,000; setup, $166,500; and inspection, $142,500. 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 7,500 dlh 23,250 dlh 54 setups 94 inspections Bass boat 22,500 7,750 396 656 30,000 dlh 31,000 dlh...
Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,228,500, divided into four activities: fabrication, $660,000; assembly, $288,000; setup, $153,000; and inspection, $127,500. 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 7,500 dlh 24,000 dlh 54 setups 94 inspections Bass boat 22,500 8,000 396 656 30,000 dih 32,000 dlh...
Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,251,250, divided into four activities: fabrication, $595,000; assembly, $238,000; setup, $225,750; and inspection, $192,500. 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 8,750 dlh 25,500 dih 63 setups 109 inspections Bass boat 26,250 8,500 462 766 35,000 dlh 34,000 dlh...
Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,250,350, divided into four activities: fabrication, $615,000; assembly, $252,000, setup. $209,100; and inspection, $174,250. 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 10,250 dlh 31,500 dih 74 setups 128 inspections Bass boat 30,750 10,500 541 897 41,000 dih 4...
Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $692,750, divided into four activities: fabrication, $323,000; assembly, $136,000; setup, $127,500; and inspection, $106,250. 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 4,250 dih 12,750 dlh 31 setups 53 inspections Bass boat 12,750 4,250 224 372 17,000 dlh 17,000 dih...
Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $816,000, divided into four activities: fabrica $384,000; assembly, $132,000; setup, $162,000; and inspection, $138,000. 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 6,000 dlh Assembly 16,500 din Setup 43 setups Inspection 75 inspections Speedboat Bass boat 18,000 5,500 525 24,000 dih 22,000 dih 360...