Activity Budgeted Activity Cost Activity Base Casting $640,000 Machine hours Assembly 125,000 Direct labor hours Inspecting 30,000 Number of inspections Setup 28,000 Number of setups Materials handling 20,000 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 Activity Base Entry Dining Total Machine hours 7,500 12,500 20,000 Direct labor hours 3,000 2,000 5,000 Number of inspections 200 400 600 Number of setups 150 200 350 Number of loads 400 600 1,000 Units produced 5,000 4,000 9,000 a Determine the activity rate for each activity Activity Activity Rate Casting $fill in the blank 1 per machine hour Assembly $fill in the blank 2 per direct labor hour Inspecting $fill in the blank 3 per inspection Setup $fill in the blank 4 per setup Materials handling $fill in the blank 5 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 $fill in the blank 6 $fill in the blank 7 Dining Room Lighting Fixtures $fill in the blank 8 $fill in the blank 9

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Question: Activity Budgeted Activity Cost Activity Base Casting $640,000 Machine hours Assembly 125,000 Direct labor hours Inspecting 30,000 Number of inspections Setup 28,000 Number of setups

Activity	Budgeted Activity Cost	Activity Base
Casting	$640,000	Machine hours
Assembly	125,000	Direct labor hours
Inspecting	30,000	Number of inspections
Setup	28,000	Number of setups
Materials handling	20,000	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:

Activity Base	Entry	Dining	Total
Machine hours	7,500	12,500	20,000
Direct labor hours	3,000	2,000	5,000
Number of inspections	200	400	600
Number of setups	150	200	350
Number of loads	400	600	1,000
Units produced	5,000	4,000	9,000

a. Determine the activity rate for each activity.

Activity	Activity Rate
Casting	$fill in the blank 1 per machine hour
Assembly	$fill in the blank 2 per direct labor hour
Inspecting	$fill in the blank 3 per inspection
Setup	$fill in the blank 4 per setup
Materials handling	$fill in the blank 5 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	$fill in the blank 6	$fill in the blank 7
Dining Room Lighting Fixtures	$fill in the blank 8	$fill in the blank 9

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