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Activitybased costing:factory overhead costs
The total factory overhead for Cypress Marine Company is budgeted for the year at $ divided into four activities: fabrication, $ assembly, $ setup, $ and inspection, $ Cypress Marine manufactures two types of boats: speedboats and bass boats. The activitybase usage quantities for each product by each activity are as follows:
tableFabrication,Assembly,Setup,InspectionSpeedboat setups, inspectionsBass boat, setups, inspections
Each product is budgeted for units of production for the year.
a Determine the activity rates for each activity.
Fabrication
Assembly
Setup
Inspection
per dlh
per dlh
per setup per inspection
b Determine the activitybased factory overhead per unit for each product. Round all per unit answers to the nearest dollar.
Speedboats per unit
Bass Boats per unit
