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 $296,640 Machine hours Assembly 190,260 Direct labor hours Inspecting 29,100 Number of inspections Setup 53,900 Number of setups Materials handling 44,690 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 Machine hours Direct labor hours Entry Dining Total 4,910 4,360 9,270 4,230 6,340 10,570

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 $296,640 Machine hours Assembly 190,260 Direct labor hours Inspecting 29,100 Number of inspections Setup 53,900 Number of setups Materials handling 44,690 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 Machine hours Direct labor hours Entry Dining Total 4,910 4,360 9,270 4,230 6,340 10,570

Name: a. Determine the activity rate for each activity. If required, round
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Description: a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar.Activity RateActivityCastingAssemblyInspecting$per machine hourper direct labor hourper inspectionSetupper setupMaterials handlingper loadb. Use the

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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