Question 1)
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Question 2)
Lonsdale Inc. manufacturers 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:
Single Plantwide Factory Overhead Rate Gwinnett County Chrome Company manufactures three chrome-plated products-automobile bumpers, valve covers, and wheels. These products are manufactured in two production departments (Stamping and Plating). The factory overhead for Gwinnett County Chrome is $239,200. The three products consume both machine hours and direct labor hours in the two production departments as follows: Direct Labor Hours Machine Hours Stamping Department Automobile bumpers 590 810 Valve covers 310 570 Wheels 350 620 1,250 2,000 Plating Department Automobile bumpers 195 1,150 Valve covers 200 700 Wheels 195 750 590 2,600 Total 1,840 4,600 Required: 1. Determine the single plantwide factory overhead rate, using each of the following allocation bases: (a) direct labor hours and (b) machine hours. Direct labor hour overhead rate per direct labor hour Machine hour overhead rate per machine hour 2. Determine the product factory overhead costs, using (a) the direct labor hour plantwide factory overhead rate and (b) the machine hour plantwide factory overhead rate. Automobile Bumpers Valve Covers Wheels Direct labor hours $ $1 Machine hours Budgeted Activity Activity Cost Activity Base Casting $328,780 Machine hours Assembly 209,380 Direct labor hours Inspecting 32,320 Number of inspections Setup 46,400 Number of setups Materials handling 44,640 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: Entry Total Activity Base Machine hours Dining 4,540 5,130 9,670 Direct labor hours 4,410 6,610 11,020 Number of inspections 1,540 480 2,020 Number of setups 260 60 320 Number of loads 730 200 930 Units produced 10,200 5,100 15,300 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 $ II Dining Room Lighting Fixtures
