Exercise chapter 18

eBook Activity Rates and Product Costs using Activity-Based Costing Lonsdale 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: Budgeted Activity Activity Cost Activity Base Casting $246,720 Machine hours Assembly 222,680 Direct labor hours Inspecting 31,840 Number of inspections Setup 36,400 Number of setups Materials handling 45,360 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 5,450 4,830 10,280 Direct labor hours 4,690 7,030 11,720 Number of inspections 1,510 480 1,990 Number of setups 230 SO 280 Number of loads 850 230 1,080 Units produced 10,800 5.400 16,200 8. Determine the activity rate for each activity. It required, round the rate to the nearest dollar. Check My Work Machine hours 5,450 4,830 10,280 Direct labor hours 4,690 7,030 11,720 Number of inspections 1,510 480 1,990 Number of setups 230 50 280 Number of loads 850 230 1,080 Units produced 10,800 5,400 16,200 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 Der 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 amouks to the nearest cent. Product Total Activity Cost Activity Cost Per Unit Entry Lighting Fixtures Dining Room Lighting Fixtures Check My Work Previ