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Budgeted Activity Cost Activity Base Activity Casting $219,840 Machine hours Assembly Inspecting 187,920 28,500 55,080 43,680 Direct labor hours Number of inspections Number of setups
Budgeted Activity Cost Activity Base Activity Casting $219,840 Machine hours Assembly Inspecting 187,920 28,500 55,080 43,680 Direct labor hours Number of inspections Number of setups Number of loads Setup Materials handling 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 Base Entry Dining Total Machine hours 4,850 4,310 9,160 Direct labor hours 4,180 6,260 10,440 Number of inspections 1,440 4 60 1,900 Number of setups 290 70 360 Number of loads 720 190 910 Units produced 9,600 4,800 14,400 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Activity Activity Rate Casting per machine hour 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 " 4 Dining Room Lighting Fixtures
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