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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 factures.
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 factures. These activities and their associated budgeted activity costs and activity bases are as follows: Activity Casting Assembly Inspecting Setup Materials handling Budgeted Activity Cost Activity Base $570,000 Machine hours 80,000 Direct labor hours 42,000 Number of inspections 38,000 Number of setups 23,750 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 followi Dining Total Activity Base Machine hours Direct labor hours Number of inspections Number of setups Number of loads Units produced Entry 6,000 3,000 600 13,000 2.000 400 200 500 3,000 19,000 5.000 1,000 500 950 9,000 300 6,000 Previous Next Dining Total Activity Base Machine hours Direct Labor hours Number of inspections Number of setups Number of loads Units produced Entry 6,000 3,000 600 13,000 2,000 400 19,000 5,000 1,000 500 300 200 450 500 3,000 6,000 950 9,000 a. Determine the activity rate for each activity Activity Activity Rate Casting per machine hour Assembly per direct labor hour 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 Previous
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