Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

need help with part b figuring out the activity cost per unit Activity Rates and Product Costs using Activity-Based Costing Lonsdale Inc. manufactures entry and

need help with part b figuring out the activity cost per unit image text in transcribed
image text in transcribed
Activity Rates and Product Costs using Activity-Based Costing 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: 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: a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. 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. Feedback T check My Work a. Budgeted Activity Cost + Total Activity-Base Usage = Activity Rate for each activity b. Calculate for each product: Activity-Base Usage x Activity Rate from Req. (a) = Activity cost for each activity. Sum all activity costs to obtain the total cost per product. Divide total costs by number of units to obtain activity cost per unit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

IS Audit And Control For Accountants

Authors: Mr Amir Manzoor

1st Edition

1493665006, 978-1493665006

Students also viewed these Accounting questions