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Activity rates and product costs using activity-based costing Lonsdale 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 Lonsdale 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 $640,000 Machine hours Assembly 130,000 Direct labor hours Inspecting 42,000 Number of inspections Setup 48,950 Number of setups Materials handling 21,600 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 Dining Total Entry 6,320 3,900 13,680 2.500 Activity Base Machine hours Direct labor hours Number of inspections Number of setups Number of loads Units produced 20,000 6,500 1,000 640 330 360 220 550 310 590 900 6,000 3,600 2,400 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. analysis, and input your answers in the questions below. X HHH Open spreadsheet a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar Activity Activity Rate Casting $ 32 per machine hour Assembly $ 20 per direct labor hour Inspecting $ 42 per inspection Setup $ 89 per setup Materials handling $ 24 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 Why Work a. Budgeted Activity Cout. Total Activity Base Usage Activity Rate for each activity b. Calculate for each product Activity-Base Usage x Rate from Req(a) Activity cost for each activity Sum all activity costs to obtain the total cost per product. Divide total costs by number of units to obtain activity cost per un Check My Work Email Instructor Save and EH Submit Assignment for Grading

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