eBook Calculator Print Item Activity Rates and Product Costs using Activity-Base

Question

eBook Calculator Print Item Activity Rates and Product Costs using Activity-Based Costing Garfield Inc. manufactures entry and dining room lighting fixtures. Five activities are used in marn budgeted activity costs and activity bases are as follows: Budgeted Activity Cost Activity Activity Base Casting $271,080 Machine hours Assembly 183,200 Direct labor hours Inspecting Setup Materials handling Corporate records were obtained to estimate the amount of activity to be used by the two products. Th 31,070 Number of inspections 9,900 Number of setups 46,200 Number of loads produced follow: Activity Base Machine hours Entry Dining Total 5,320 4,720 10,040 Direct labor hours 4,580 6,870 11.450 Number of inspections 1,820570 2.390 300 830 220 1,050 10,600 5,300 15,900 24060 Number of setups Number of loads Units produced a. Determine the activity rate for each activity. if required, round the rate to the nearest doliar 4 more Chock My Work uses zemaning DOLL

Explanation / Answer

Calculate activity rate :

Activity expected cost expected activity activity rate Casting 271080 10040 27 per machine hour Assembly 183200 11450 16 per labour hour Inspecting 31070 2390 13 per inspection Setup 39900 300 133 per setup Material handling 46200 1050 44 per load

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