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Activity Casting Assembly Inspecting Setup Budgeted Activity Cost Activity Base $258,700 Machine hours 204,120 Direct labor hours 41,700 Number of inspections 41,310 Number of setups
Activity Casting Assembly Inspecting Setup Budgeted Activity Cost Activity Base $258,700 Machine hours 204,120 Direct labor hours 41,700 Number of inspections 41,310 Number of setups 49,820 Materials handling Number of loads 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: Entry Dining Total Activity Base Machine hours 5,270 4,680 9,950 Direct labor hours 4,540 6,800 11,340 Number of inspections 2,110 670 2,780 Number of setups 220 50 270 Number of loads 840 220 1,060 Units produced 10,400 5,200 15,600 E C a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Activity Casting Activity Rate per machine hour Assembly $ per direct labor hour Inspecting +49 Setup Materials handling per inspection per setup 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 Entry Lighting Fixtures Total Activity Cost Activity Cost Per Unit $ Dining Room Lighting Fixtures
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