Activity-based costing:factory overhead costs

The total factory overhead for Cypress Marine Company is budgeted for the year at $1,523,000, divided into four activities: fabrication, $720,000, assembly, $259,000, setup, $294,000, and inspection, $250,000. Cypress Marine manufactures two types of boats: speedboats and bass boats. The activity-base usage quantities for each product by each activity are as follows:

Item	Fabrication	Assembly	Setup	Inspection
Speedboat	10,000 dlh	27,750 dlh	72 setups	125 inspections
Bass boat	30,000	9,250	528	875
Total	40,000 dlh	37,000 dlh	600 setups	1,000 inspections

Each product is budgeted for 2,500 units of production for the year.

a. Determine the activity rates for each activity.

Activities	Amount
Fabrication	_per dlh
Assembly	_per dlh
Setup	_per setup
Inspection	_ per inspection

b. Determine the activity-based factory overhead per unit for each product. Round all per unit answers to the nearest dollar. Speedboats _ per unit Bass Boats_ per unit