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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 manufacturing the fixtures.

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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 manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Budgeted Activity Activity Cost Activity Base Casting $237,590 Machine hours Assembly 223,820 Direct labor hours Inspecting 34,560 Number of inspections Setup 38.480 Number of setups Materials handling 34.440 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 Direct labor hours Number of inspections Number of setups Number of loads Units produced 10,300 a. Determine the activity rate for each ot 5.400 other her Units produced 10,800 5,400 16,200 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Activity Activity Rate Casting $ 237,590 X x per machine hour per mach Assembly $223,820 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. Activity Cost Per Unit Product Entry Lighting Fixtures Dining Room Lighting Fixtures Total Activity Cost s h iny

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