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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
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 5,360 4,750 10,110 Direct labor hours 4,610 6,920 11,530 Number of inspections 2,100 660 2,760 Number of setups 190 SO 240 Number of loads 870 230 1,100 Units produced 10,600 5,300 15,900 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Activity Casting Assembly Inspecting Setup Materials handling Activity Rate 26 per machine hour X per direct labor hour X per inspection 147 per setup X 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. Total Activity Cost Activity Cost Per Unit Product Entry Lighting Fixtures Dining Room Lighting Fixtures x x x
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