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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 produced
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 Machine hours Direct labor hours Number of inspections Number of setups Number of loads Units produced Entry 7,500 3,000 200 150 Entry Lighting Fixtures Dining Room Lighting Fixtures 400 5,000 Dining 12,500 2,000 400 200 600 4,000 a. Determine the activity rate for each activity. Activity Rate Total 20,000 5,000 600 350 1,000 9,000 Activity 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 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: a. Determine the activity rate for each activity. 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: a. Determine the activity rate for each activity
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 Machine hours Direct labor hours Number of inspections Number of setups Number of loads Units produced Entry 7,500 3,000 200 150 Entry Lighting Fixtures Dining Room Lighting Fixtures 400 5,000 Dining 12,500 2,000 400 200 600 4,000 a. Determine the activity rate for each activity. Activity Rate Total 20,000 5,000 600 350 1,000 9,000 Activity 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
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