Machine hoursDirect labor hoursNumber of inspectionsNumber of setupsNumber of loadsUnits produced5,510 4,8904,740 7,1201,9806202005075020011,0005,500 16,500a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar.Activity RateActivityCastingAssemblyInspecting10,40011,8602,600250950Entry Lighting FixturesDining Room Lighting Fixturesper machine hourper direct labor hourper inspectionSetupper setup.Materials handlingper loadb. Use the activity rates in (a) to determine the total and per-unit activity costs associated with each product. Round the per unit amountsto the nearest cent.ProductTotal Activity Cost Activity Cost Per Unit ActivityCastingAssemblyInspectingBudgetedActivity Cost Activity BaseMachine hoursDirect labor hoursNumber of inspectionsNumber of setupsNumber of loads$312,000201,62036,400Setup37,000Materials handling42,750Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usagequantities and units produced follow:Activity BaseEntryDining. TotalMachine hours5,5104,89010,400Direct labor hours4,740 7,12011,860Number of inspections1,980 6202,600Number of setups20050250Number of loads750200950Units produced11,000 5,500 16,500a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar.Activity RateActivityCastingper machine hourfoot lehne hour

Overheads are considered as fixed and common expenses that should be allocated to the products on…

a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Activity Rate Activity Casting Assembly Inspecting per machine hour 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 to the nearest cent. Product Entry Lighting Fixtures Dining Room Lighting Fixtures Total Activity Cost 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 machine hour 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 to the nearest cent. Product Entry Lighting Fixtures Dining Room Lighting Fixtures Total Activity Cost Activity Cost Per Unit

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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Question: Use the high-low method to determine the estimating cost function with machine-hours as the cost If July's estimated machine-hours are 4,500, calculate the total estimated operating costs of the Machining Department using the cost function in (a)? Max has used least squares regression analysis to obtain the following output:
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