Wave Wake Marine Company has total estimated factory overhead for the year of $1,200,000, divided into four activities: fabrication, $450,000; assembly, $210,000; setup, $240,000; and inspection, $300,000. Wave Wake 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 and
(b) The factory overhead cost per unit for each product, using activity-based costing.

Transcribed Image Text:

Assembly Speedboat 800 dlh ,200 dlh 60 setups 600 inspections Fabrication Setup 1,200 2,000 dlh 100 200 800 inspections 2,000 dlh 160 setups