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a. Determine the activity rate for each activity. It required, round the rate to the nearest dollar. Activity Activity Rate Casting per machine hour Assembly
a. Determine the activity rate for each activity. It required, round the rate to the nearest dollar. Activity Activity Rate Casting per machine hour Assembly per direct labor hour Inspecting per inspection Setup per setup Materials handling per load b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with each product. Round the per unit amounts to the nearest cent. Product Total Activity Cost Activity Cost Per Unit Entry Lighting Fixtures Dining Room Lighting Fixtures $ Activity Rates and Product Costs using Activity-Based Costing Lonsdale 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: Budgeted Activity Cost Activity Base Activity Casting $326,370 Machine hours Assembly 191,590 Direct labor hours Inspecting 37,940 Number of inspections Setup 30,960 38,640 Number of setups Number of loads Materials handling 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 follow: Activity Base Entry Dining Total Machine hours 5,240 4,650 9,890 Direct labor hours 4,510 6,760 11,270 Number of inspections 2,060 650 2,710 Number of setups 190 50 240 Number of loads 660 180 840 Units produced 10,400 5,200 15,600 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Activity Activity Rate Casting per machine hour Assembly per direct labor hour Inspecting per inspection Catun ner cetin
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