Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Activity rates and product costs using activity-based cost Idris Inc. manufactures entry and dining room lighting fixtures. Rive activities are used in manufacturing the

image text in transcribedimage text in transcribed

Activity rates and product costs using activity-based cost Idris Inc. manufactures entry and dining room lighting fixtures. Rive activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Budgeted Activity Cost Activity Base Activity Casting Assembly Inspecting Setup Materials handling $309,900 Machine hours 223,820 Direct labor hours 33,280 Number of inspections 48,640 Number of setups 47,840 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 5,470 4,860 10,330 Direct labor hours 4,710 7,070 11,780 Number of inspections 1,580 500 2,080 Number of setups 310 70 380 Number of loads Units produced 820 10,800 220 1,040 5,400 16,200 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Activity Casting Assembly Inspecting Setup Materials handling Activity Rate per machine hour per direct labor hour per inspection per setup 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 amounts to the nearest cent. Product Entry Lighting Fixtures Dining Room Lighting Fixtures Total Activity Cost Activity Cost Per Unit

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

Fundamental financial accounting concepts

Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward

8th edition

978-007802536, 9780077648831, 0078025362, 77648838, 978-0078025365

More Books

Students also viewed these Accounting questions

Question

Use a credit-scoring model. AppendixLO1

Answered: 1 week ago