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Activity Rates and Product Costs using Activity - Based Costing Garfield Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing
Activity Rates and Product Costs using ActivityBased Costing 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: Activity Budgeted Activity Cost Activity Base Casting $ Machine hours Assembly Direct labor hours Inspecting Number of inspections Setup Number of setups Materials handling Number of loads Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activitybase usage quantities and units produced follow: Activity Base Entry Dining Total Machine hours Direct labor hours Number of inspections Number of setups Number of loads Units produced a Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Activity Activity Rate Casting $fill in the blank per machine hour Assembly $fill in the blank per direct labor hour Inspecting $fill in the blank per inspection Setup $fill in the blank per setup Materials handling $fill in the blank per load b Use the activity rates in a to determine the total and perunit activity costs associated with each product. Round the per unit rates to the nearest cent. Product Total Activity Cost Activity Cost Per Unit Entry Lighting Fixtures $fill in the blank $fill in the blank Dining Room Lighting Fixtures $fill in the blank $fill in the blank
Activity Rates and Product Costs using ActivityBased Costing
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:
Activity Budgeted
Activity Cost
Activity Base
Casting $ Machine hours
Assembly Direct labor hours
Inspecting Number of inspections
Setup Number of setups
Materials handling Number of loads
Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activitybase usage quantities and units produced follow:
Activity Base Entry Dining Total
Machine hours
Direct labor hours
Number of inspections
Number of setups
Number of loads
Units produced
a Determine the activity rate for each activity. If required, round the rate to the nearest dollar.
Activity Activity Rate
Casting $fill in the blank
per machine hour
Assembly $fill in the blank
per direct labor hour
Inspecting $fill in the blank
per inspection
Setup $fill in the blank
per setup
Materials handling $fill in the blank
per load
b Use the activity rates in a to determine the total and perunit activity costs associated with each product. Round the per unit rates to the nearest cent.
Product Total Activity Cost Activity Cost Per Unit
Entry Lighting Fixtures $fill in the blank
$fill in the blank
Dining Room Lighting Fixtures $fill in the blank
$fill in the blank
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