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 $280,000 Machine hours Assembly 159,600 Direct labor hours Inspecting 26,400 Number of inspections Setup 37,250 Number of setups Materials handling 43,860 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 5,300 4,700 10,000 Direct labor hours 4,560 6,840 11,400 Number of inspections 1,820 580 2,400 Number of setups 200 50 250 Number of loads 810 210 1,020 Units produced 10,600 5,300 15,900 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar.

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 $280,000 Machine hours Assembly 159,600 Direct labor hours Inspecting 26,400 Number of inspections Setup 37,250 Number of setups Materials handling 43,860 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 5,300 4,700 10,000 Direct labor hours 4,560 6,840 11,400 Number of inspections 1,820 580 2,400 Number of setups 200 50 250 Number of loads 810 210 1,020 Units produced 10,600 5,300 15,900 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar.

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Description: Activity Rates and Product Costs using Activity-Based CostingLonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and theirassociated budgeted activity costs and

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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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: 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: a. Determine the activity rate for each activity. 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.
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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: Activity Casting Assembly Inspecting Setup Materials handling Activity Base Machine hours Direct labor hours Number of inspections Number of setups Number of loads Units produced Budgeted Activity Cost Activity Base Corporate records were obtained to estimate the amount c activity to be used by the two products. The estimated activity-base usage quantities and units produced follow: Entry Dining Total 5,440 4,830 10,270 4,680 7,030 11,710 1,870 590 2,460 270 810 10,800 Activity Casting Assembly Inspecting Setup Materials handling a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Activity Rate $ $ $ $225,940 Machine hours 222,490 39,360 46,860 50,470 $ Direct…