Reference no: EM132715355

Problem - 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	Budgeted Activity Cost	Activity Base
Casting	$570,000	Machine hours
Assembly	80,000	Direct labor hours
Inspecting	42,000	Number of inspections
Setup	38,000	Number of setups
Materials handling	23,750	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	6,000	13,000	19,000
Direct labor hours	3,000	2,000	5,000
Number of inspections	600	400	1,000
Number of setups	300	200	500
Number of loads	450	500	950
Units produced	6,000	3,000	9,000

Required -

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.