Activity rates and product costs using activity-based costIdris Inc. manufactures entry and dining room lighting fixtures. Five activities are used inmanufacturing the fixtures. These activities and their associated budgeted activity costs and activitybases are as follows:ActivityCastingAssemblyInspectingSetupMaterials handlingActivity BaseMachine hoursBudgetedActivity CostDirect labor hoursNumber of inspectionsNumber of setupsNumber of loadsUnits produced$304,800231,60040,80046,72044,100Corporate records were obtained to estimate the amount of activity to be used by the two products.The estimated activity-base usage quantities and units produced follow:TotalEntryDining5,3804,7804,630 6,9501,820580260Activity BaseMachine hoursDirect labor hoursNumber of inspectionsNumber of setupsNumber of loads71010,800601905,40010,16011,5802,40032090016,200 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar.Activity RateActivityCastingAssemblyInspecting$Product$per direct labor hourper inspectionSetupper setupMaterials handlingper loadb. Use the activity rates in (a) to determine the total and per-unit activity costs associated with eachproduct. Round the per unit amounts to the nearest cent.Total Activity CostX per machine hourEntry Lighting FixturesDining Room Lighting FixturesActivity Cost Per Unit$$

Name: Activity rates and product costs using activity-based costIdris Inc.
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Description: Activity rates and product costs using activity-based costIdris Inc. manufactures entry and dining room lighting fixtures. Five activities are used inmanufacturing the fixtures. These activities and their associated budgeted activity costs and activ

Activity based costing is a technique of assigning cost under which the activities involved in…

Business

Accounting

a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar Activity Rate Activity Casting Assembly Inspecting per direct labor hour per inspection Setup per setup Materials handling 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. Product Total Activity Cost Entry Lighting Fixtures Dining Room Lighting Fixtures X per machine hour $ Activity Cost Per Unit

a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar Activity Rate Activity Casting Assembly Inspecting per direct labor hour per inspection Setup per setup Materials handling 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. Product Total Activity Cost Entry Lighting Fixtures Dining Room Lighting Fixtures X per machine hour $ Activity Cost Per Unit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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