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activity rates and product cost using activity-based costing Garfield Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures.
activity rates and product cost using activity-based costing
t l acuvity to be used by the two products. The estimated activity-bas Activity Base Entry Dining Total Machine hours 7,500 12,50020,000 Direct labor hours 2,000 3,0005,000 Number of inspections 500 250 750 150 Number of setups 100 250 400 Number of loads 300 700 Units produced 5,000 2,500 7,500 a. Determine the activity rate for each activity. Activity Activity Rate per machine hour Casting per direct labor hour Assembly per inspection Inspecting per setup Setup per load Materials handling b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with each product. Round the pe Activity Cost Per Unit Total Activity Cost Product Entry Lighting Fixtures Dining Room Lighting Fixtures Garfield 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 :
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