Activity-based costing:factory overhead costs

The total factory overhead for Cypress Marine Company is budgeted for the year at $900,000, divided into four activities: fabrication, $240,000, assembly, $128,000, setup, $160,000, and inspection, $372,000. 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	2,800 dlh	1,200 dlh	300 setups	1,100 inspections
Bass boat	2,000	2,000	100	400
Total	4,800 dlh	3,200 dlh	400 setups	1,500 inspections

Each product is budgeted for 400 units of production for the year.

a. Determine the activity rates for each activity.

Activities	Amount
Fabrication	fill in the blank 1 of 4$ per dlh
Assembly	fill in the blank 2 of 4$ per dlh
Setup	fill in the blank 3 of 4$ per setup
Inspection	fill in the blank 4 of 4$ per inspection

b. Determine the activity-based factory overhead per unit for each product. Speedboats fill in the blank 1 of 2$ per unit Bass Boats fill in the blank 2 of 2$ per unit