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Activity Rates and Products using Activity Based Costing Lonsdale Inc manufactures entry and dining room lighting fortures. Five activities are used in maracturing the futures. These adivities and their associated budgeted activity and resto Activity Casting Assembly Inspecting Setup Material handling Budgeted Activity Cost Activity Base $570,000 Machine hours 10,000 Direct labor hours 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 its produced follow Entry 6.000 Activity Base Machine hours Direct labor hours Number of inspections Number of setups Number of loads Units produced Dining 13,000 2,000 400 Total 19,000 5.000 3,000 600 1,000 300 200 500 450 500 950 5,000 3,000 9,000 a. Determine the activity rate for each activity a. Determine the activity rate for each activity Activity Activity Rate Casting per machine hour Assembly X per direct labor hour Inspecting perpection Set per setup Materials handling per fond b. Use the activity rates in to determine the total and permit activity costs associated with each product Round the per unit amounts to the nearest cent Product Total Activity Cost Activity Cost Per Unit Entry Lighting Fixtures Dining Room Ughting Fixtures Check My Wax a. Budgeted Activity Cost + Total Activity-Baser Usage - Activity Rate for each activity b. Calculate for each product: Activity-Base Usage X Activity Rate from Reg. (a) Activity cost for each activity. Sum a activity costs to obtain the total cost per product. Olvide total costs by number of units to obtain activity cont per un

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