Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

image text in transcribedimage text in transcribed

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: Budgeted Activity Cost Activity Base Activity Casting $247,250 Machine hours Assembly 191,590 Direct labor hours Inspecting 23,940 Number of inspections 50,400 Number of setups Setup Materials handling 39,950 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 Machine hours Entry 5,240 4,510 1,300 Direct labor hours Dining 4,650 6,760 410 70 180 5,200 Total 9,890 11,270 1,710 350 Number of inspections Number of setups 280 Number of loads 850 670 10,400 Units produced 15,600 Number of inspections 1,300 410 70 1,710 350 Number of setups 280 670 Number of loads 180 850 Units produced 10,400 5,200 15,600 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Activity Activity Rate Casting | per machine hour Assembly per direct labor hour Inspecting per inspection Setup per setup Materials handling 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 " Dining Room Lighting Fixtures

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

The Price Of Football Understanding Football Club Finance

Authors: Kieran Maguire

3rd Edition

1788216830, 978-1788216838

More Books

Students also viewed these Accounting questions

Question

Psychological issues associated with officiating/refereeing

Answered: 1 week ago

Question

3. How can we confi rm both ourselves and others?

Answered: 1 week ago

Question

2. In what ways can confl ict enrich relationships?

Answered: 1 week ago