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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 $237,820 Machine hours Assembly 235,800 Direct labor hours Inspecting 34,680 Number of inspections Setup 38,000 Number of setups Materials handling 46,460 Number of loads Corporate records were obtained to estimate the amount of activity to be used by the twp products. The estimated activity-base usage quantities and units produced follow: Activity Base Dining Total Machine hours Direct labor hours Entry 5,480 4,720 1,550 4,860 7,070 10,340 11,790 490 2,040 Number of inspections Number of setups Number of loads 200 50 250 800 210 1,010 16,200 Units produced 10,800 5,400 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Activity Activity Rate Casting per machine hour per direct labor hour Assembly 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 amounts to the nearest cent. Product Total Activity Cost Activity Cost Per Unit Entry Lighting Fixtures Dining Room Lighting Fixtures

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