Question

Contemporary Lighting 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 are provided in the table below.


a. Determine the activity rate for each activity.
b. Use the activity rates in (a) to determine the total and per- unit activity costs associated with eachproduct.


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  • CreatedJune 27, 2014
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