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Britelite Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated activity costs and activity bases are as follows: Activity Costs Activity Activity Base (Budgeted) Casting $42,000 Machine hours Assembly 13,500 Direct labor hours Inspecting 5,800 Number of inspections Setup 16,800 Number of setups Materials handling 3,600 Number of loads Corporate records were abtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced for each product and in total are provided in the following table Activity Base Entry Dining Total Machine hours 800 600 1400 Direct labor hours 500 400 900 Number of inspections 140 150 290 Number of setups 80 60 140 Number of loads 50 40 90 Units produced 1,200 1,700 a. Determine the activity rate for each activity. Activity Activity Rate Casting mh Assembly dih Inspecting finsp. Setup /setup Materials handing Poad b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with each product. If required, round your answers to two decimal places. Entry Lighting Dining Room Fixtures Lighting Fixtures Casting Assembly Inspecting Setup Materials handing Total activity cost Number of units Activity cost per unit

Britelite Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated activity costs and activity bases are as follows: Activity Costs Activity Activity Base (Budgeted) Casting $42,000 Machine hours Assembly 13,500 Direct labor hours Inspecting 5,800 Number of inspections Setup 16,800 Number of setups Materials handling 3,600 Number of loads Corporate records were abtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced for each product and in total are provided in the following table Activity Base Entry Dining Total Machine hours 800 600 1400 Direct labor hours 500 400 900 Number of inspections 140 150 290 Number of setups 80 60 140 Number of loads 50 40 90 Units produced 1,200 1,700 a. Determine the activity rate for each activity. Activity Activity Rate Casting mh Assembly dih Inspecting finsp. Setup /setup Materials handing Poad b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with each product. If required, round your answers to two decimal places. Entry Lighting Dining Room Fixtures Lighting Fixtures Casting Assembly Inspecting Setup Materials handing Total activity cost Number of units Activity cost per unit

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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Activity Rates and Product Costs Using Activity-Based Costing BriteLite Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated activity costs and activity bases are as follows: Activity Costs Activity Activity Base (Budgeted) Casting $42,000 Machine hours Assembly 13,500 Direct labor hours Inspecting 5,800 Number of inspections Setup 16,800 Number of setups Materials handling 3,600 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 for each product and in total are provided in the following table: Activity Base Entry Dining Total Machine hours 800 600 1400 Direct labor hours 500 400 900 Number of inspections 140 150 290 Number of setups 80 60 140 Number of loads 50 40 90 Units produced 1,200 500 1,700 a. Determine the activity rate for each activity. Activity Activity Rate Casting mh Assembly dih Inspecting finsp. Setup /setup Materials handling fioad b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with each product. If required, round your answers to two decimal places. Dining Room Lighting Fixtures Entry Lighting Fixtures Casting Assembly Inspecting Setup Materials handling Total activity cost Number of units Activity cost per unit
Transcribed Image Text:Activity Rates and Product Costs Using Activity-Based Costing BriteLite Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated activity costs and activity bases are as follows: Activity Costs Activity Activity Base (Budgeted) Casting $42,000 Machine hours Assembly 13,500 Direct labor hours Inspecting 5,800 Number of inspections Setup 16,800 Number of setups Materials handling 3,600 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 for each product and in total are provided in the following table: Activity Base Entry Dining Total Machine hours 800 600 1400 Direct labor hours 500 400 900 Number of inspections 140 150 290 Number of setups 80 60 140 Number of loads 50 40 90 Units produced 1,200 500 1,700 a. Determine the activity rate for each activity. Activity Activity Rate Casting mh Assembly dih Inspecting finsp. Setup /setup Materials handling fioad b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with each product. If required, round your answers to two decimal places. Dining Room Lighting Fixtures Entry Lighting Fixtures Casting Assembly Inspecting Setup Materials handling Total activity cost Number of units Activity cost per unit
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