BE $4-3$ Activity$-$based costing: factory overhead costs

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Obj. $4$

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 inspec$-$tion, $$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:

Speedboat Bass boat

Fabrication $2,800$ dlh

$2,000$

$\_\_\_\_\_\_\_\_\_\_$

$4,800$ dlh $\_\_\_\_\_$

Assembly $1,200$ dlh

$2,000$

$\_\_\_\_\_\_\_\_\_\_$

$3,200$ dlh $\_\_\_\_\_$ Setup

$300$ setups $100$

$\_\_\_\_\_\_\_\_\_$

$400$ setups Inspection

$1,100$ inspections $400$

$\_\_\_\_\_\_\_\_\_\_$

$1,500$ inspections Each product is budgeted for $400$ units of production for the year. Determine $($a$)$ the activity rates for each activity and $($b$)$ the activity$-$based factory overhead per unit for each product.