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arfield Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs

arfield 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:

ActivityBudgeted Activity Cost Activity BaseCasting$238,320 Machine hoursAssembly181,120 Direct labor hoursInspecting22,750 Number of inspectionsSetup52,850 Number of setupsMaterials handling34,030 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:

Activity BaseEntryDiningTotalMachine hours5,260 4,670 9,930 Direct labor hours4,530 6,790 11,320 Number of inspections1,330 420 1,750 Number of setups280 70 350 Number of loads660 170 830 Units produced10,400 5,200 15,600

a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar.

ActivityActivity RateCastingx per machine hourAssemblyx per direct labor hourInspectingx per inspectionSetupx per setupMaterials handlingx 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.

ProductTotal Activity CostActivity Cost Per UnitEntry Lighting FixturesxxDining Room Lighting Fixturesxx

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