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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 $328,780 Machine hours Assembly 209,380 Direct labor hours Inspecting 32,320 Number of inspections Setup 46,400 Number of setups Materials handling 44,640 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 5,130 4,540 9,670 Direct labor hours 4,410 6,610 11,020 Number of inspections 1,540 480 2,020 Number of setups 260 60 320 Number of loads 730 200 930 Units produced 10,200 5,100 15,300 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Activity Activity Rate Casting $4 34 v per machine hour Assembly $ 19 v per direct labor hour Inspecting $4 16 V per inspection Setup 145 V per setup Materials handling 48 V per load b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with each product. Round the per unit amounts to the nearest cent.

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 $328,780 Machine hours Assembly 209,380 Direct labor hours Inspecting 32,320 Number of inspections Setup 46,400 Number of setups Materials handling 44,640 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 5,130 4,540 9,670 Direct labor hours 4,410 6,610 11,020 Number of inspections 1,540 480 2,020 Number of setups 260 60 320 Number of loads 730 200 930 Units produced 10,200 5,100 15,300 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Activity Activity Rate Casting $4 34 v per machine hour Assembly $ 19 v per direct labor hour Inspecting $4 16 V per inspection Setup 145 V per setup Materials handling 48 V per load b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with each product. Round the per unit amounts to the nearest cent.

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 11E: Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in...
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(8) ABC: Need help on Part B

b. Use the activity rates in (a) to determine the total and per-unit 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 $ 355,590 $ 305,930 x Dining Room Lighting Fixtures $ 34.86 X 2$ 59.99
Transcribed Image Text:b. Use the activity rates in (a) to determine the total and per-unit 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 $ 355,590 $ 305,930 x Dining Room Lighting Fixtures $ 34.86 X 2$ 59.99
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 $328,780 Machine hours Assembly 209,380 Direct labor hours Inspecting 32,320 Number of inspections Setup 46,400 Number of setups Materials handling 44,640 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 5,130 4,540 9,670 Direct labor hours 4,410 6,610 11,020 Number of inspections 1,540 480 2,020 Number of setups 260 60 320 Number of loads 730 200 930 Units produced 10,200 5,100 15,300 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Activity Activity Rate Casting 34 per machine hour Assembly $ 19 per direct labor hour Inspecting 16 per inspection Setup 145 per setup Materials handling $ 48 per load b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with each product. Round the per unit amounts to the nearest cent.
Transcribed Image Text: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 $328,780 Machine hours Assembly 209,380 Direct labor hours Inspecting 32,320 Number of inspections Setup 46,400 Number of setups Materials handling 44,640 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 5,130 4,540 9,670 Direct labor hours 4,410 6,610 11,020 Number of inspections 1,540 480 2,020 Number of setups 260 60 320 Number of loads 730 200 930 Units produced 10,200 5,100 15,300 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Activity Activity Rate Casting 34 per machine hour Assembly $ 19 per direct labor hour Inspecting 16 per inspection Setup 145 per setup Materials handling $ 48 per load b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with each product. Round the per unit amounts to the nearest cent.
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