25: Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are usedin manufacturing the fixtures. These activities and their associated budgeted activity costs andactivity bases are as follows:ActivityBudgeted Activity CostActivity BaseCasting$570,000Machine hoursAssembly80,000Direct labor hoursInspectingSetupMaterials handling42,000Number of inspectionsNumber of setups38,00023,750Number of loadsCorporate records were obtained to estimate the amount of activity to be used by the twoproducts. The estimated activity-base usage quantities and units produced follow:Activity BaseEntryDiningTotalMachine hours6,00013,00019,000Direct labor hours3,0002,0005,000Number of inspections6004001,000Number of setups300200500Number of loads450500950Units produced6,0003,0009,000Calculate the activity rate for each activity:CastingAssemblyInspectingSetupMaterials Handling

Activity rate = Budgeted activity cost / Total quantity of Activity base

Answered: 25: Lonsdale Inc. manufactures entry…

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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8. Lisa's Automotive Company has two support departments, Personnel and Maintenance. The Maintenance Department costs of $80,000 are allocated on the basis of standard service hours used. The Personnel Department costs of $20,000 are allocated based on the number of employees. Costs of Departments A and B are $40,000 and $60,000, respectively. Data on standard service hours and number of employees are as follows: Maintenance Dept. Personnel Dept. Production Dept. A Production Dept. B Standard service hours used 200 200 240 160 Number of employees 10 20 40 120 How much of the cost of the Maintenance Department is allocated to Department B using the direct method? Select one: a. $60,000 b. $32,000 c. $12,800 d. $24,000 e. $16,000
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Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,347,400, divided into four activities: fabrication, $660,000; assembly, $276,000; setup, $224,400; and inspection, $187,000. Bardot Marine manufactures two types of boats: speedboats am bass boats. The activity-base usage quantities for each product by each activity are as follows: Fabrication Assembly Setup Inspection Speedboat 11,000 dlh 34,500 dlh 79 setups 138 inspections Bass boat 33,000 11,500 581 962 44,000 dlh 46,000 dlh 660 setups 1,100 inspections Each product is budgeted for 6,500 units of production for the year. a. Determine the activity rates for each activity. Fabrication per direct labor hour Assembly %$4 per direct labor hour Setup %$4 per setup Inspection per inspection b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar. Speedboat per unit Bass boat %$4 per unit
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