3 Mail-Tyler Barthel0g 5 Reasons Why Custon SUNY at Buffalo sends Multimedia Lib

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3 Mail-Tyler Barthel0g 5 Reasons Why Custon SUNY at Buffalo sends Multimedia Library Tyler Show Me How Calculator Activity-Based Costing Mainline Marine Company has total estimated factory overhead for the year of $936,900, divided into four activities: fabrication, $432,100; assembly, $179,400; setup, $120,400; and inspection, $205,000. Mainline manufactures two types of boats: a speedbost and a bass boat. The activity-base usage quantities for each product by each activity are as follows: Fabrication Assembly Setup Inspection 1,100 dih 1,800 2,900 dih 1,600 dih 50 setups 110 inspections Bass boat 700 90 300 2,300 dlh140 setups 410 inspections Each product is budgeted for 100 units of production for the year a. Determine the activity rates for each activity. Fabrication Assembly Setup Iper dih per dih per setup per inspection b. Determine the factory overhead cost per unit for each product, using activity-based costing. If required, round to the nearest cent. Bass boat Previous 215 AM

Explanation / Answer

A.

Fabrication 432100/2900 149 Assembly 179400/2300 78 Setup 120400/140            860 Inspection 205000/410 500 B. Speedboat Bass Boat Fabrication (432100/2900)*1100 163900 (432100/2900)*1800 268200 Assembly (179400/2300)*1600 124800 (179400/2300)*700 54600 Setup (120400/140)*50          43,000 (120400/140)*90       77,400 Inspection (205000/410)*110 55000 (205000/410)*300 150000 Total cost (A) 386700 550200 No of units (B) 100 100 Cost per units (A/B) 3867 5502

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