Maritime Marine Company has total estimated factory overhead for the year of $935,000, divided into four activities: fabrication, $429,200; assembly, $189,000; setup, $96,800; and inspection, $220,000. 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
1,000 dlh
1,700 dlh
30 setups
90 inspections
Bass boat
1,900
1,000
80
350
2,900 dlh
2,700 dlh
110 setups
440 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
148 per dih
70 per dih
880 per setup
500 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
$2,752.5 X
Bass boat