Activity-Based Costing Maritime Marine Company has total estimated factory overh

Question

Activity-Based Costing Maritime Marine Company has total estimated factory overhead for the year of $1,037,800, divided into four activities: fabrication, $359,600, assembly, $205,400; setup, $124,800; and inspection, $348,000. 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 1,100 dlh 1,800 2,900 dlh 1,700 dlh 40 setups 80 inspections Bass boat 900 90 500 2,600 dlh 130 setups 580 inspections Each product is budgeted for 100 units of production for the year a. Determine the activity rates for each activity Fabrication Assembly Setup Inspection b. Determine the factory overhead cost per unit for each product, using activity-based costing. If required, round per dlh per dlh per setup per inspection to the nearest cent. Speedboat Bass boat

Explanation / Answer

a) Activity rate :

b) Calculate factory overhead cost per unit :

Fabrication 124 per dlh Assembly 79 per dlh Setup 960 per setup Inspection 600 per inspection

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