Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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:
\table[[Activity,\table[[Budgeted],[Activity Cost]],Activity Base],[Casting,$210,680,Machine hours],[Assembly,146,160,Direct labor hours],[Inspecting,18,810,Number of inspections],[Setup,47,950,Number of setups],[Materials handling,46,000,Number of loads]]
Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced follow:
\table[[Activity Base,Entry,Dining,Total],[Machine hours,4,850,4,310,9,160],[Direct labor hours,4,180,6,260,10,440],[Number of inspections,1,300,410,1,710],[Number of setups,280,70,350],[Number of loads,790,210,1,000],[Units produced,9,600,4,800,14,400]]
a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar.
\table[[Activity,Activity Rate,],[Casting,$,per machine hour],[Assembly,$,per direct labor hour],[Inspecting,$,per inspection]]
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

9781285586618

Students also viewed these Accounting questions