Question
Idris Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs
Idris 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:
ActivityBudgeted Activity Cost Activity BaseCasting$288,550Machine hoursAssembly170,100Direct labor hoursInspecting32,040Number of inspectionsSetup40,300Number of setupsMaterials handling41,400Number of loadsCorporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced follow:
Activity BaseEntryDiningTotalMachine hours5,2704,6809,950Direct labor hours4,5406,80011,340Number of inspections2,0306402,670Number of setups21050260Number of loads710190900Units produced10,4005,20015,600This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.
Open spreadsheet
a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar.
ActivityActivity RateCasting$fill in the blank 2 per machine hourAssembly$fill in the blank 3 per direct labor hourInspecting$fill in the blank 4 per inspectionSetup$fill in the blank 5 per setupMaterials handling$fill in the blank 6 per loadb. 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.
ProductTotal Activity CostActivity Cost Per UnitEntry Lighting Fixtures$fill in the blank 7$fill in the blank 8Dining Room Lighting Fixtures$fill in the blank 9$fill in the blank 10Step by Step Solution
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