Question

The total factory overhead for Bardot Marine Company is budgeted for the year at $504,150, divided into four activities: fabrication, $221,000; assembly, $80,000; setup, $109,650; and inspection, $93,500. 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 4,250 dlh 12,000 dlh 31 setups 53 inspections Bass boat 12,750 4,000 224 372 17,000 dlh 16,000 dlh 255 setups 425 inspections Each product is budgeted for 3,000 units of production for the year. a. Determine the activity rates for each activity. Fabrication $fill in the blank 1 per direct labor hour Assembly $fill in the blank 2 per direct labor hour Setup $fill in the blank 3 per setup Inspection $fill in the blank 4 per inspection b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar. Speedboat $fill in the blank 5 per unit Bass boat $fill in the blank 6 per unit

Answer 1

Variables to fill the blanks are mathematically given as

a)

F= 16

A= $ 6

S= $ 530

I= $ 270

b)

The speed boat is  $ 59

The Bass Boat is $ 148

What are the activity rates for each activity.?

Generally, the equation for  Fabrication is  mathematically given as

$F=\frac{Overhead \ Cost}{ Activity \ Base \ Usage \ Quantities}$

Therefore

$F= \frac{448,000}{28,000}$

F= 16

Generally, the Assembly  is  mathematically given as

$A= \frac{180,000}{30,000}$

A= $ 6

Generally, the Setup is  mathematically given as

S= $ 222,600 / 420

S= $ 530

Generally, the Inspection is  mathematically given as

$I = \frac{189,000}{700}$

I= $ 270

b)

For the Activity-based factory overhead per unit

The speed boat is  $ 59

The Bass Boat is $ 148

In conclusion, Use the values to fill in the required blanks

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