25: 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: Activity Budgeted Activity Cost Activity Base Casting $570,000 Machine hours Assembly 80,000 Direct labor hours Inspecting Setup Materials handling 42,000 Number of inspections 38,000 Number of setups 23,750 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 6,000 13,000 19,000 Direct labor hours 3,000 2,000 5,000 Number of inspections Number of setups 600 400 1,000 300 200 500 Number of loads 450 500 950 Units produced 6,000 3,000 9,000 Calculate the activity rate for each activity: Casting Assembly Inspecting Setup Materials Handling

Eclipse Motor Company manufactures two types of specialty electric motors, a commercial motor and a residential motor, through two production departments, Assembly and Testing. Presently, the company uses a single plantwide factory overhead rate for allocating factory overhead to the two products. However, management is considering using the multiple production department factory overhead rate method. The following factory overhead was budgeted for Eclipse: Assembly Department $280,000   Testing Department 800,000     Total $1,080,000     Direct machine hours were estimated as follows: Assembly Department 4,000 hours Testing Department 5,000     Total 9,000 hours   In addition, the direct machine hours (dmh) used to produce a unit of each product in each department were determined from engineering records, as follows:   Commercial Residential Assembly Department 2.0 dmh 3.0 dmh Testing Department 6.0   1.5   Total machine hours per unit 8.0 dmh 4.5 dmh…

Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,347,400, divided into four activities: fabrication, $660,000; assembly, $276,000; setup, $224,400; and inspection, $187,000. Bardot Marine manufactures two types of boats: speedboats am bass boats. The activity-base usage quantities for each product by each activity are as follows: Fabrication Assembly Setup Inspection Speedboat 11,000 dlh 34,500 dlh 79 setups 138 inspections Bass boat 33,000 11,500 581 962 44,000 dlh 46,000 dlh 660 setups 1,100 inspections Each product is budgeted for 6,500 units of production for the year. a. Determine the activity rates for each activity. Fabrication per direct labor hour Assembly %$4 per direct labor hour Setup %$4 per setup Inspection per inspection b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar. Speedboat per unit Bass boat %$4 per unit

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 budget activity costs and activity bases are as follows: Budgeted Activity Activity Cost Activity Base Casting $330,560 Machine hours Assembly 212,040 Direct labor hours Inspecting 26,100 Number of inspections Setup 39,000 Number of setups Materials handling 39,990 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 5,470 4,860 10,330 Direct labor hours 4,710 7,070 11,780 Number of inspections 1,320 420 1,740 Number of setups 210 50 260 Number of loads 730 200 930 Units produced 10,800 5,400 16,200 a. Determine the activity rate for each activity. If required, round the rate to the…

1-Sweet Sugar Company manufactures three products (white sugar, brown sugar, and powdered sugar) in a continuous production process. Senior management has asked the controller to conduct an activity-based costing study. The controller identified the amount of factory overhead required by the critical activities of the organization as follows: Activity Budgeted Activity Cost Production   $500,000   Setup   144,000   Inspection   44,000   Shipping   115,000   Customer Service   84,000     Total   $887,000     The activity bases identified for each activity are as follows: Activity Activity Base Production Machine hours Setup Number of setups Inspection Number of inspections Shipping Number of customer orders Customer Service Number of customer service requests   The activity-base usage quantities and units produced for the three products were determined from corporate records and are as follows:     Machine Hours   Number of Setups   Number of…

Evergreen Inc. expects to manufacture 4,000 refrigerators during the last quarter of the current year. The company uses activity-based costing to determine the product costs. The manufacturing activities and associated information is provided in the table below.  Manufacturing Activities and Associated Information  Overhead activities  Overhead costs assigned ($)  Number of cost driver Material handling 120,000 240,000 Parts Devising 400,000 50,000 Machine hours (MH) Assembling 168,000 240,000 Parts Finishing  240,000 4,000 Finishing hours (FH) Each refrigerator uses 30 parts and requires 5 machine hours and 1 finishing hour during the production process. The direct material costs and direct labor costs required for each refrigerator is $500 and $90, respectively. What would be the overhead rate per finishing hour (FH)? (Round your answer to two decimal points) Group of answer choices $8.00 per FH $0.70 per FH $60.00 per FH $0.50 per FH

Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,207,500, divided into four activities: fabrication, $595,000; assembly, $266,000; setup, $189,000; and inspection, $157,500. Bardot Marine manufactures two types of boats: speedboats and bass boats. The activity-base usage quantities for each product by each activity are as follows: Inspection Speedboat Bass boat Fabrication Assembly 462 525 setups Each product is budgeted for 7,500 units of production for the year. a. Determine the activity rates for each activity. 17 per direct labor hour 7 per direct labor hour Setup Inspection Fabrication 8,750 dlh $ $ Speedboat Bass boat Assembly Setup 28,500 dlh 9,500 38,000 dlh 26,250 35,000 dlh 63 setups 360 per setup 180 per inspection b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar. $ per unit $ per unit 109 inspections 766 875 inspections