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.
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
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