esook

Activity Rates and Product Costs using Activity$-$Based Costing

$\backslash$table$[[,\backslash$table$[[$Budgeted$],[$Activity Cost$]],$Activity Base$],[$Activity$,$$$346,120,$Machine hours$],[$Casting$,197,370,$Direct labor hours$],[$Assembly$,32,900,$Number of inspections$],[$Inspecting$,56,620,$Number of setups$],[$Setup$,40,170,$Number of loads$],[$Materials handling,,$]]$

Corporate records were obtained torestimate the amount of activity to be used by the two products. The estimated activity$-$base usage quantities and units produced follow;

$\backslash$table$[[$Activity Base,Entry,Dining,Total$],[$Machine hours,$5,400,4,780,10,180],[$Direct labor hours,$4,640,6,970,11,610],[$Number of inspections,$1,790,560,2,350],[$Number of setups,$310,70,380],[$Number of loads,$810,220,1,030],[$Units produced,$10,800,5,400,16,200]]$

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

$\backslash$table$[[$Activity$,$Activity Rate$],[$Casting$,$X per machine hour$],[$Assembly$,$X per direct labor hour$],[$Inspecting$,$X per inspection$],[$Setup$,$$ per setup$],[$Materials handling,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.

$\backslash$table$[[$Product$,$Total Activity Cost,Activity Cost Per Unit$],[$Entry Lighting Fixtures,$,$