Contemporary Lighting Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows:

Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced are provided in the table below.

a. Determine the activity rate for each activity.
b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with each product.

Transcribed Image Text:

Budgeted Activity Cost Activity Base Activity Machine hours Direct labor hours Number of inspections Number of setups Number of loads Casting Assembly Inspecting Setup Materials handling $106,400 52,800 17,080 33,600 35,700 Activity Base Dining Total Entry Machine hours Direct labor hours Number of inspections Number of setups Number of loads Units produced 2,600 1,000 1,200 2,300 3,800 3,300 1,220 900 180 600 320 240 60 250 850 3,000 10,500 7,500