OBJ.4 550 EX 11-11 Activity rates and product costs using activity-based costing Lightsquare 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 $127,750 Machine hours Assembly 63,200 Direct labor hours Inspecting 21,330 Number of inspections Setup 28,750 Number of setups Materials handling 31,600 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: Entry Dining Total Activity Base Machine hours 2500 1,150 3,650 Direct labor hours 960 2,200 3,160 Number of inspections 860 325 1,185 Number of setups 170 60 230 Number of loads 570 220 790 Units produced 5,541 2,128 7,669 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 each product. EX 11-12 Activity cost pools, activity rates, and product costs using OBJ.4 d cortina A B C D E H J R S Budgeted Activity Cost Total Activity Base mh dih Activity Casting Assembly Inspecting Setup Materials handling Activity Hate mh dih insp Vsetup Woad Insp setup loads 3 4 b. 25 Entry Lighting Fixtures Activity Activity Base Usage Rate mh Activity Cost Dining Room Lighting Fixtures Activity Activity Base Usage Rate Activity Cost mh dih dh Activity Casting Assembly Inspecting Setup Materials handling Total activity cost Number of units Activity cost per unit insp setups loads 27 28 29 30 31 32 33 34 35 36 37 30 33 40 41 42 43 insp setups loads