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Idris Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity
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: Activity Casting Assembly Inspecting Setup Budgeted Activity Cost Activity Base $284,200 Machine hours 173,550 Direct labor hours 27,600 Number of inspections 45,570 36,520 Number of setups Number of loads Materials handling 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 5,380 4,770 10,150 Direct labor hours 4,630 6,940 11,570 Number of inspections 1,750 550 2,300 Number of setups 250 60 310 Number of loads 660 170 830 Units produced 10,600 5,300 15,900 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Activity Casting Assembly Inspecting Setup Materials handling Activity Rate per machine hour per direct labor hour per inspection per setup 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 Entry Lighting Fixtures Dining Room Lighting Fixtures Total Activity Cost Activity Cost Per Unit
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a To determine the activity rate for each activity we can divide the budgeted activity cost by the c...Get Instant Access to Expert-Tailored Solutions
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