The total factory overhead for Magnum Corporation is budgeted for the year at $500,000. This is divided into three activity pools: Fabrication $246,000 Assembly $144,000 Setup $110,000 Magnum manufactures two types of kayaks: Basic and Deluxe. The activity-based usage quantity for each project by activity is as follows: Fabrication Assembly Setup Basic Deluxe 2,000 dlh 8,000 dlh 5 setups 10,000 dlh 24,000 dlh 15 setups Total activity-base usage 12,000 dlh 32,000 dlh 20 setups Each product is budgeted for 2,500 units of production for the year. What is the activity-based factory overhead per unit for the Deluxe kayak? a. $154.54 b. $100.00 c. $41.80 d. $158.20
The total factory overhead for Magnum Corporation is budgeted for the year at $500,000. This is divided into three activity pools: Fabrication $246,000 Assembly $144,000 Setup $110,000 Magnum manufactures two types of kayaks: Basic and Deluxe. The activity-based usage quantity for each project by activity is as follows: Fabrication Assembly Setup Basic Deluxe 2,000 dlh 8,000 dlh 5 setups 10,000 dlh 24,000 dlh 15 setups Total activity-base usage 12,000 dlh 32,000 dlh 20 setups Each product is budgeted for 2,500 units of production for the year. What is the activity-based factory overhead per unit for the Deluxe kayak? a. $154.54 b. $100.00 c. $41.80 d. $158.20
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 3BE: Activity-based costing: factory overhead costs The total factory overhead for Bardot Marine Company...
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![The total factory overhead for Magnum Corporation is budgeted for the year at $500,000. This is divided into three activity pools:
Fabrication $246,000
Assembly $144,000
Setup
$110,000
Magnum manufactures two types of kayaks: Basic and Deluxe. The activity-based usage quantity for each project by activity is as follows:
Fabrication Assembly Setup
Basic
Deluxe
2,000 dlh
8,000 dlh 5 setups
10,000 dlh 24,000 dlh 15 setups
Total activity-base usage 12,000 dlh
32,000 dlh 20 setups
Each product is budgeted for 2,500 units of production for the year.
What is the activity-based factory overhead per unit for the Deluxe kayak?
a. $154.54
b. $100.00
c. $41.80
d. $158.20](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4e14c1eb-bf03-4151-a40a-f74c59676687%2F365ceb90-0a5f-4210-b7e3-e14660b985af%2Fvfy1y_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The total factory overhead for Magnum Corporation is budgeted for the year at $500,000. This is divided into three activity pools:
Fabrication $246,000
Assembly $144,000
Setup
$110,000
Magnum manufactures two types of kayaks: Basic and Deluxe. The activity-based usage quantity for each project by activity is as follows:
Fabrication Assembly Setup
Basic
Deluxe
2,000 dlh
8,000 dlh 5 setups
10,000 dlh 24,000 dlh 15 setups
Total activity-base usage 12,000 dlh
32,000 dlh 20 setups
Each product is budgeted for 2,500 units of production for the year.
What is the activity-based factory overhead per unit for the Deluxe kayak?
a. $154.54
b. $100.00
c. $41.80
d. $158.20
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