The total factory overhead for Cypress Marine Company is budgeted for the year at $795,600, divided...
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The total factory overhead for Cypress Marine Company is budgeted for the year at $795,600, divided into four activities: fabrication, $384,000, assembly, $138,000, setup, $147,600, and inspection, $126,000. 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: Fabrication Assembly Setup Inspection Speedboat Bass boat 6,000 dlh 18,000 17,250 dlh 5,750 43 setups 75 inspections 317 525 24,000 dlh 23,000 dlh 360 setups 600 inspections Each product is budgeted for 6,500 units of production for the year. a. Determine the activity rates for each activity. Fabrication Assembly Setup Inspection X per dlh X per dih x per setup X per inspection b. Determine the activity-based factory overhead per unit for each product. Round all per unit answers to the nearest dollar. Speedboats x per unit Bass Boats X per unit Feedback Check My Work Calculate: (a) For each activity: Activity budget + Activity-base usage - Activity Rate (b) For each product: Activity-base usage x Activity Rate from Req. (a) = Activity cost per unit for each activity. Then sum all activity costs per product to determine a total and divide the total overhead by budgeted units to derive the overhead per unit for each product. The total factory overhead for Cypress Marine Company is budgeted for the year at $795,600, divided into four activities: fabrication, $384,000, assembly, $138,000, setup, $147,600, and inspection, $126,000. 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: Fabrication Assembly Setup Inspection Speedboat Bass boat 6,000 dlh 18,000 17,250 dlh 5,750 43 setups 75 inspections 317 525 24,000 dlh 23,000 dlh 360 setups 600 inspections Each product is budgeted for 6,500 units of production for the year. a. Determine the activity rates for each activity. Fabrication Assembly Setup Inspection X per dlh X per dih x per setup X per inspection b. Determine the activity-based factory overhead per unit for each product. Round all per unit answers to the nearest dollar. Speedboats x per unit Bass Boats X per unit Feedback Check My Work Calculate: (a) For each activity: Activity budget + Activity-base usage - Activity Rate (b) For each product: Activity-base usage x Activity Rate from Req. (a) = Activity cost per unit for each activity. Then sum all activity costs per product to determine a total and divide the total overhead by budgeted units to derive the overhead per unit for each product.
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