Activity Rates and Product Costs using Activity-Based Costing Lonsdale inc, manufactures entry and dining room...
60.1K
Verified Solution
Link Copied!
Question
Accounting
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 $319,940 Nochine hours Assembly 203,870 Direct labor hours Inspecting 43,840 Number of inspections : Setup 38,570 Number of setups Materials handing 39,770 Number of loads Corporate records were obtained to estimate the amount of activity to be used by the two products. The entimated activity-base usage quantities and unies produced follow: \begin{tabular}{lrrr} Activity Base & Entry & Dining & Total \\ \hline Machine hours & 4,990 & 4,420 & 9,410 \\ Direct labor hours & 4,290 & 6,440 & 10,730 \\ Number of inspections & 2,080 & 660 & 2,740 \\ Number of setups & 230 & 60 & 290 \\ Number of leads & 770 & 200 & 970 \\ Units produced & 10,000 & 5,000 & 15,000 \end{tabular} a. Determine the activity rate for eoch activity. If required, round the rate to the nearest dollar. Greck My Work Previous 'Next 3 a. Determine the activity rate for each activity. If required, round the rate to the nearest doliar. b. Use the activity rates in (o) to determine the total and per-unit activity costs associated with eoch product. Round the per unit amounts to the nearest cent
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!