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Lonsdale Inc., manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs
Lonsdale 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 $268,380 Machine hours Assembly 158,620 Direct labor hours Inspecting 22,110 Number of inspections Setup 47,260 Number of setups Materials handling 35.700 Number of loads Corporate records were obtained to estimate the amount of activity to be used by the two product. The estimated activity base usage quantities and units produced follow Activity Base Entry Dining Total Machine hours 5,270 4,670 9,940 Direct labor hours 4.530 6,800 11,330 Number of inspections 1.530 480 2,010 Number of setups 280 60 Number of loads 670 180 850 Units produced 10,400 5,200 15,600 340 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar
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