Lightsquare 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 | $99,820 | Machine hours |
| Assembly | 58,900 | Direct labor hours |
| Inspecting | 21,252 | Number of inspections |
| Setup | 33,221 | Number of setups |
| Materials handling | 34,830 | 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 | 2,101 | 1,119 | 3,220 |
| Direct labor hours | 791 | 2,309 | 3,100 |
| Number of inspections | 724 | 288 | 1,012 |
| Number of setups | 175 | 64 | 239 |
| Number of loads | 544 | 230 | 774 |
| Units produced | 6,569 | 1,747 | 8,316 |
| | Required: |
| | Complete the Activity Table for entry lighting and dining room lighting fixtures. | A. | Determine the activity rate for each activity. Enter these rates in the Activity Rate columns. | | B. | Use the activity rates in (A) to determine the total and per-unit activity costs associated with each product. Round the per-unit rates to the nearest cent. | |
Activity Table - Entry Lighting
| | Complete the Activity Table for entry lighting fixtures. | A. | Determine the activity rate for each activity. Enter these rates in the Activity Rate column. | | B. | Use the activity rates in (A) to determine the total and per-unit activity costs associated with each product. Round the per-unit rates to the nearest cent. | |
| | Entry Lighting Fixtures |
| Activity | Activity- | | | | |
| Base | | Activity | | Activity |
| Usage | X | Rate | = | Cost |
| Casting | | | | | |
| Assembly | | | | | |
| Inspecting | | | | | |
| Setup | | | | | |
| Materials handling | | | | | |
| Total activity cost | | |
| Number of units | | |
| Activity cost per unit | | |
Activity Table - Dining Room Lighting
| | Complete the Activity Table for dining room lighting fixtures. | A. | Determine the activity rate for each activity. Enter these rates in the Activity Rate column. | | B. | Use the activity rates in (A) to determine the total and per-unit activity costs associated with each product. Round the per-unit rates to the nearest cent. | |
| | Dining Room Lighting Fixtures |
| Activity | Activity- | | | | |
| Base | | Activity | | Activity |
| Usage | X | Rate | = | Cost |
| Casting | | | | | |
| Assembly | | | | | |
| Inspecting | | | | | |
| Setup | | | | | |
| Materials handling | | | | | |
| Total activity cost | | |
| Number of units | | |
| Activity cost per unit | | |
