Garfield 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 ActivityActivity CostActivity BaseCasting$99,820Machine hoursAssembly58,900Direct labor hoursInspecting21,252Number of inspectionsSetup33,221Number of setupsMaterials handling34,830Number of loads Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced follow:Activity BaseEntryDiningTotalMachine hours2,1011,1193,220Direct labor hours7912,3093,100Number of inspections7242881,012Number of setups17564239Number of loads544230774Units produced6,5691,7478,316 Complete the Activity Table for dining room lighting fixtures.a. Determine the activity rate for dining room lighting activity. Enter these rates in the Activity Rate column.b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with dining room lighting product. Round the per-unitrates to the nearest cent.Dining Room Lighting FixturesActivity-ActivityBaseActivityActivityUsageRateCostCasting2$Assembly$InspectingSetup$Materials handling2$Total activity cost$Number of unitsActivity cost per unit$ Complete the Activity Table for entry lighting fixtures.a. Determine the activity rate for entry lighting activity. Enter these rates in the Activity Rate column.b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with entry lighting product. Round the per-unitrates to the nearest cent.Entry Lighting FixturesActivity-ActivityBaseActivityActivityUsageRateCostCasting2$$Assembly2$Inspecting2$Setup2$Materials$handlingTotal activity cost2$Number of unitsActivity cost per unit2$

Name: Garfield Inc. manufactures entry and dining room lighting fixtures. Fi
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Description: Garfield 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 ActivityActivity Cos

The per-unit cost is calculated by dividing the total cost of the activity by the total no. of units…

Answered: Garfield Inc. manufactures entry and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Garfield 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	$99,820	Machine hours
Assembly	58,900	Direct labor hours
Inspecting	21,252	Number of inspections
Setup	33,221	Number of setups
Materials handling	34,830	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	2,101	1,119	3,220
Direct labor hours	791	2,309	3,100
Number of inspections	724	288	1,012
Number of setups	175	64	239
Number of loads	544	230	774
Units produced	6,569	1,747	8,316

Complete the Activity Table for dining room lighting fixtures.
a. Determine the activity rate for dining room lighting activity. Enter these rates in the Activity Rate column.
b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with dining room lighting product. Round the per-unit
rates to the nearest cent.
Dining Room Lighting Fixtures
Activity-
Activity
Base
Activity
Activity
Usage
Rate
Cost
Casting
2$
Assembly
$
Inspecting
Setup
$
Materials handling
2$
Total activity cost
$
Number of units
Activity cost per unit
$

Complete the Activity Table for entry lighting fixtures.
a. Determine the activity rate for entry lighting activity. Enter these rates in the Activity Rate column.
b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with entry lighting product. Round the per-unit
rates to the nearest cent.
Entry Lighting Fixtures
Activity-
Activity
Base
Activity
Activity
Usage
Rate
Cost
Casting
2$
$
Assembly
2$
Inspecting
2$
Setup
2$
Materials
$
handling
Total activity cost
2$
Number of units
Activity cost per unit
2$

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