Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Activity Rates and Product Corts using Activity Based Costing Lonsdale Inc manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the

image text in transcribed
image text in transcribed
Activity Rates and Product Corts 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 Activity Cost Activity Base Casting 3211,460 Machine hours Assembly 192,440 Direct labor hours Inspecting 37,240 Number of inspections Set 52.500 Number of setups Materials handling 50.500 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 Activity Base Entry Dining Total Machine hours 5.260 4,670 9.950 Direct labor hours 4,530 6.790 11,320 Number of inspections 2,020 640 2.000 Number of 200 70 350 Number of load 800 210 1,010 Units produced 10,400 5,200 15.600 Determine the activitate for each activity. If required, round the rate to the nearest dollar. Activity Activity Kate Casting per machine hour 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: Dining 5.260 Activity Base Entry Total Machine hours 4,670 9,930 Direct labor hours 4,530 6,790 11,320 Number of Inspections 2,020 640 2,660 Number of setups 280 70 350 Number of loads 800 210 1,010 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 per load Inspecting per inspection per setup Materials handling b. Use the activity rates in tal 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Data Analytics For Accounting

Authors: Vernon Richardson, Katie Terrell, Ryan Teeter

1st Edition

126406828X, 978-1264068289

More Books

Students also viewed these Accounting questions

Question

Describe some common hazards in the contemporary workplace

Answered: 1 week ago