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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 manufactuing the fotures.
Activity Rates and Product Costs using Activity-Based Costing Garfield Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufactuing the fotures. These activities and their associated budgeted activity costs and activity bases are as follows: Activity Casting Assembly Activity Cost Activity Base $560,000 Machine hours 75,000 30,000 18,750 14,000 Direct labor hours Number of inspections Number of setups Number of loads Setup Materials handling Corporate records were cbtained 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 Machine hours Direct labor hours Number of inspections Number of setups Number of loads Units produced a. Determine the activity rate for each activity Activity Casting Assembly Entry Dining Total 7,500 12,500 20,000 2,000 3,000 5,000 250 100 300 750 250 700 7,500 150 100 5,0002,500 Activity Rate per machine hour per direct labor hour per inspection per setup per load Setup Materials handling
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