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Activity Rates and Product Costs Using Activity - Based CostingBriteLite Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the

Activity Rates and Product Costs Using Activity-Based CostingBriteLite Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated activity costs and activity bases are as follows:ActivityActivity Costs(Budgeted)Activity BaseCasting$42,000 Machine hoursAssembly13,500 Direct labor hoursInspecting5,800 Number of inspectionsSetup16,800 Number of setupsMaterials handling3,600 Number of loadsCorporate 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 for each product and in total are provided in the following table:Activity BaseEntryDiningTotalMachine hours 8006001400 Direct labor hours 500400900 Number of inspections 140150290 Number of setups 8060140 Number of loads 504090 Units produced 1,2005001,700 a. Determine the activity rate for each activity.a. Determine the activity rate for each activity.
Activity
Casting
Assembly
Inspecting
Setup
Materials handling
Activity Rate mh dih /insp./setup
/load
b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with each product. If required, round your answers to two decimal places.
Entry Lighting Dining Room
Fixtures
Lighting Fixtures
Casting
Assembly
Inspecting
Setup
Materials handling
Total activity cost
Number of units
Activity cost per
unit
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