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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
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: Activity Casting Assembly Inspecting Setup Matenals handing Budgeted Activity Cost Activity Base $254,610 Machine hours 204,250 Direct labor hours: 37,440 Number of inspections 37,960 Number of setups 37,050 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 quantibes and units produced follow: Activity Base Entry Dining Total Machine hours 5,000 4,430 9,430 Direct labor hours 4,300 6,450 10,750 Number of inspections Number of setups 1,780 560 2,340 210 50 260 Number of loads 750 200 950 Units produced 10,000 5,000 15,000 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Activity Activity Rate
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