Activity Rates and Product Costs using Activity$-$Based 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 $$313,600$ Machine hours

Assembly $178,720$ Direct labor hours

Inspecting $27,950$ Number of inspections

Setup $38,400$ Number of setups

Materials handling $40,940$ 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 $5,1904,6109,800$

Direct labor hours $4,4706,70011,170$

Number of inspections $1,6305202,150$

Number of setups $24060300$

Number of loads $700190890$

Units produced $10,4005,20015,600$

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 $1$

per machine hour

Assembly $fill in the blank $2$

per direct labor hour

Inspecting $fill in the blank $3$

per inspection

Setup $fill in the blank $4$

per setup

Materials handling $fill in the blank $5$

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 rates to the nearest cent.

Product Total Activity Cost Activity Cost Per Unit

Entry Lighting Fixtures $fill in the blank $6$

$fill in the blank $7$

Dining Room Lighting Fixtures $fill in the blank $8$

$fill in the blank $9$