Activity-based costing

Maritime Marine Company's estimated total plant overheads for the year are $955,700 and are divided into four operations: manufacturing, $390,000; assembly, $192,000; installation, $115,200; and inspection, $258,500. Maritime manufactures two types of boats: speedboat and bassboat. The activity-based usage amounts for each product according to each activity are as follows:

	Fabrication		Meeting		To create		Check
Speedboat	1.100	debt	1.400	debt	40	installations	120	inspections
bas tekne	1.900		1.000		80		350
	3.000	debt	2.400	debt	120	installations	470	inspections

Each product is budgeted for production of 100 units per year.

A. Determine the activity rates for each activity.

Fabrication	$ per dlh
Meeting	$ per dlh
To create	$ per install
Check	$ per inspection

B. Determine the factory overhead per unit for each product using activity-based costing. If necessary, round to the nearest percent.

Speedboat	$
bas tekne	$

Answer rating: 100% (QA)

A Activity Rates To calculate the activity rates we need to divide the total cost of each activity b... View the full answer