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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:

Activity Budgeted Activity Cost Activity Base
Casting $361,550 Machine hours
Assembly 223,820 Direct labor hours
Inspecting 27,360 Number of inspections
Setup 47,950 Number of setups
Materials handling 40,020 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 5,470 4,860 10,330
Direct labor hours 4,710 7,070 11,780
Number of inspections 1,300 410 1,710
Number of setups 280 70 350
Number of loads 690 180 870
Units produced 10,800 5,400 16,200

a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar.

Activity Activity Rate
Casting $ per machine hour
Assembly $ per direct labor hour
Inspecting $ per inspection
Setup $ per setup
Materials handling $ 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 Total Activity Cost Activity Cost Per Unit
Entry Lighting Fixtures $ $
Dining Room Lighting Fixtures $ $

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