Question

Obj. 4 ures. Five activities are used in ociated budgeted activity costs and cost per unit for each prow EX 18-11 Activity rates and product costs using activity-based costing B. Dining room Garfield Inc, manufactures entry and dining room lighting fixtures. Five activitie lighting fixtures, manufacturing the fixtures. These activities and their associated budgeted activit $167.40 per unit activity bases are as follows: Budgeted Activity Activity Cost $560,000 EXCEL TEMPLATE 75,000 Inspecting 30,000 Setup 18,750 Materials handling Casting Assembly Activity Base Machine hours Direct labor hours Number of inspections Number of setups Number of loads 14,000 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 Machine hours Direct labor hours Number of inspections Number of setups Number of loads Units produced Entry 7,500 2,000 500 150 400 5,000 Dining 12,500 3,000 250 100 300 2,500 Total 20,000 5,000 750 250 700 7,500 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.

Answer 1

CB) Soon 5,000 Activity oth rate of each activity, - a) Determination of actirty rate of eae Activity on Activity rate Activity Budgeted Activity cost Base CA B). CAD casting A $560,000 20,000 $28 Assembly 75,000 Inspecting 30,000 750 setup 18,750 250 m 75 00 material 700. 14,000. 20 handling 101 Determination of total & per unit activity cost Entry lighting mas Dining lighting activity Budgeted aty of lary of activity Budgeted ach uity rate activity activity activity o rate Base cost Basen col. CAXB) CB) 2.2(A) CAXB). CA) $28 $350,000 casting 3500 $28 $210,000 12500 45,000 Assembly 2000 is 30,000 3000 10,000 Inspecting yo 500 40 20,000 250. set up no 150 75 1250. 100 snin 75 7500 material 6,000 goo 20 on 90 8,000 300.. 20 8,000 handling $279,250 J o s $4/2,500 Total - (a) no one 2500 5000 units produced the per unit cost (%) to do lisvo eco wchland O ON 200) produced to 1920 as 1885.85 5000 $167.9 ans and 028

If you have any doubts please comment on the answer