The total factory overhead for Lifestyle Furniture Company is budgeted at $600,000 for the year, divided among four activities: fabrication, $300,000; assembly, $120,000; setup, $100,000; and materials handling, $80,000. Lifestyle manufactures two designer furniture products: a wingback chair (chair) and a computer desk (desk). The activitybase usage quantities for each product by each activity are estimated as follows:

Production for the year is budgeted for 5,000 chairs and 5,000 desks.
Determine the:

a. Activity rate for each activity.

b. Activity-based factory overhead per unit for each product.

Transcribed Image Text:

Chair Desk Total activity-base usage Fabrication 5,000 dlh 15,000 20,000 dlh Assembly 15,000 dlh 5,000 20,000 dlh Setup 30 setups 220 250 setups Materials Handling 50 moves 350 400 moves