Question

takeAssignment/takeAssignment Main doinvoker&takeAssignmentSessionLocator=&inprogressa false G ROW Activity-Based Costing Maritime Marine Company has total estimated factory overhead for the year of $882,600, divided into four activities: fabrication, $411,800; assembly, $174,200; setup, $132,600; and inspection, $164,000. Maritime manufactures two types of boats: a speedboat and a bass boat. The activity-base usage quantities for each product by each activity are as follows: Fabrication Assembly Setup Inspection Speedboat 900 dih 1.700 dih 30 setups 110 inspections Bass boat 2,000 900 100 300 2,900 din 2,600 din 130 setups 410 inspections Each product is budgeted for 200 units of production for the year. a. Determine the activity rates for each activity Fabrication per dih Assembly $ per dih Setup per setup Inspection per inspection b. Determine the factory overhead cost per unit for each product, using activity-based costing. If required, round to the nearest cent Speedboat Bass boat Check My Work Previous Next >

Answer 1

Speedboat Bass Boat Expected Activity Costs Expected Activity Activity Rate Overhead assigned Overhead assigned Fabrication Assembly Setup Inspection 411800 1742001 1326000 164000 2900 direct labor hours 2600 direct labor hours 130 setups 410 inspections 142.00 per DLH 67.00 per DLH 1020.00 per setup 400.00 per inspection Total overhead costs Total units produced Overhead cost per unit driver incurred 900 1700 30 110 127800 113900 30600 44000 316300 200 1581.50 driver incurred 2000 900 100 300 284000 60300 102000 120000 566300 200 2831.50