Mainline Marine Company has total estimated factory overhead for the year of $2,090,000, divided into four activities: fabrication, $750,000; assembly, $240,000; setup, $600,000; and inspection, $500,000. Mainline 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:

Each product is budgeted for 200 units of production for the year. Determine
(a) The activity rates for each activity
(b) The factory overhead cost per unit for each product, using activity-based costing.

Transcribed Image Text:

FabricationAssemblySetup 1,800 dlh 1,200 3,000 dlh Inspection 600 inspections 200 800 inspections Speedboat Bass boat 1,200 dlh 1,800 60 setups 100 60 setups 000 dlh 3000 dlh 160