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The total factory overhead for Bardot Marine Company is budgeted for the year at
$600,000, di
The total factory overhead for Bardot Marine Company is budgeted for the year at
$600,000, divided into four activities: fabrication, $204,000; assembly, $105,000;
setups, $156,000; and inspection, $135,000. Bardot Marine manufactures two types of
boats; speedboats and bass boats. The activity-base usage quantities for each product
by each activity are as follows:
Each product is budgeted for 250 units of production for the year. Determine (A) the
activity rate for each activity and (B) the activity-based factory overhead per unit for
each product.
Practice Problem #2: Activity Based Costing Solutions
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