Question Content Area Integrative Exercise Cost System Choice, Budgeting, Variance Analysis, Product Costing, and Data Analytics for Dawson Dental Products Budgeting and Variance Analysis Using Only a Single Unit-Level Driver Lawson Dental Products produces two different dental instruments in its St. Louis plant: crown crimping pliers and curved crown scissors. Amy Bunker, production manager, was upset with the latest performance report which indicated that she was $110,000 over the manufacturing budget. Given the efforts that she and her workers had made, she was confident that they had met or beat the budget. Not only was she upset, but she was also genuinely puzzled by the results. Of the four major manufacturing inputs in the manufacturing cost budget.

7. Assume that the following activity usage is provided for each of the two products:

Product	Direct labor hours	Machine hours	Setup
Crimping pliers	10,000	55,000	70
Crown scissors	10,000	35,000	40

b. Using the budgeted costs for each activity calculated in Requirement 5, calculate an activity rate for each of the four activities and use these rates to assign manufacturing costs to each product line. Round each rate calculation to the nearest dollar except for power rate; round it to the nearest cent. Use rounded amounts in subsequent calculations.

Line Item Description	Cost	Unit Description
Materials rate		per DLH
Labor rate		per DLH
Power rate		per machine hour
Setup rate		per setup

Manufacturing costs per product line

Line Item Description	Amount
Cost of crimping pliers
Cost of crown scissors