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Entry Dining Total 5,000 4,440 9,440 Calculator Activity Base Machine hours Direct labor hours Number of inspections Number of setups Number of loads 4,300 6,460

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Entry Dining Total 5,000 4,440 9,440 Calculator Activity Base Machine hours Direct labor hours Number of inspections Number of setups Number of loads 4,300 6,460 10,760 1,360 430 1,790 290 70 360 860 230 1,090 Units produced 10,000 5,000 15,000 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 Dining Room Lighting Fixtures $ Next > 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 fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Budgeted Activity Activity Cost Activity Base Casting $273,760 Machine hours Assembly 215,200 Direct labor hours Inspecting 30,430 Number of inspections Setup 50,040 Number of setups Materials handling 54,500 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 Base Entry Dining Total Machine hours 5,000 4,440 9,440 Direct labor hours 4,300 6,460 10,760 Number of inspections 1,360 430 1,790 Number of setups 290 70 360 Number of loads 860 230 1,090 Units produced 10,000 5,000 15,000 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Calculator Activity Base Entry Dining Total Machine hours 4,440 9,440 Direct labor hours 5,000 4,300 1,360 6,460 10,760 Number of inspections 430 1,790 290 70 360 Number of setups Number of loads 860 230 1,090 Units produced 10,000 5,000 15,000 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Activity Activity Rate Casting per machine hour per direct labor hour Assembly Inspecting $ per inspection $ per setup 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. Total Activity Cost Activity Cost Per Unit Product Entry Lighting Fixtures Dining Room Lighting Fixtures Previous Next > a D 10:18 AM

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