Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

image text in transcribed
image text in transcribed
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 $319,940 Nochine hours Assembly 203,870 Direct labor hours Inspecting 43,840 Number of inspections : Setup 38,570 Number of setups Materials handing 39,770 Number of loads Corporate records were obtained to estimate the amount of activity to be used by the two products. The entimated activity-base usage quantities and unies produced follow: \begin{tabular}{lrrr} Activity Base & Entry & Dining & Total \\ \hline Machine hours & 4,990 & 4,420 & 9,410 \\ Direct labor hours & 4,290 & 6,440 & 10,730 \\ Number of inspections & 2,080 & 660 & 2,740 \\ Number of setups & 230 & 60 & 290 \\ Number of leads & 770 & 200 & 970 \\ Units produced & 10,000 & 5,000 & 15,000 \end{tabular} a. Determine the activity rate for eoch activity. If required, round the rate to the nearest dollar. Greck My Work Previous 'Next 3 a. Determine the activity rate for each activity. If required, round the rate to the nearest doliar. b. Use the activity rates in (o) to determine the total and per-unit activity costs associated with eoch product. Round the per unit amounts to the nearest cent

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

3rd Edition

0471372668, 978-0471372660

More Books

Students also viewed these Accounting questions

Question

=+b) Is this a prospective or retrospective study? Explain.

Answered: 1 week ago