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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.
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 trases are as follows: Budgeted Activity Cost Activity Base Activity Casting Machine hours Assembly $293,190 219,070 28.640 S Direct labor hours Number of inspections Inspecting Satu & 35,040 Number of setups Material handling 38,540 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: ALGO ALOO Activity Base Entry Dining Total Machine hours 5.360 4.750 10,110 Direct labor hours 4,5106,920 11.50 Number of inspections 1,360 430 1.790 Number of setups 190 50 240 Number of loads 730 190920 Units produced 10.500 5300 15 900 a. Determine the activity rate for each activity. If required, round the rate to the nearest do Activity Activity Rate C permain how Assembly per direct labor Next > 1/11 items Su Test for Grading Inspecting per inspection per setup 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
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