Activity Rates and Product Costs using Activity-Based Costing 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: 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: a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. ActivityBudgeted Activity Cost Activity BaseCasting$225,840Machine hoursAssembly182,410Direct labor hoursInspecting30,800Number of inspectionsSetup43,400Number of setupsMaterials handling37,200Number of loads Activity Activity Rate \begin{tabular}{lll} \hline Casting & per machine hour \\ Assembly & per direct labor hour \\ Inspecting & per inspection \\ Setup & per setup \\ Materials handling & $ per load \end{tabular} b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with each product. Round the per unit amounts to the nearest cent. Product Total Activity Cost Activity Cost Per Unit Entry Lighting Fixtures $$ Dining Room Lighting Fixtures $.

1. Activity Rates and Product Costs using Activity-Based Costing
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:
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:
a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar.
ActivityBudgeted
Activity Cost
Activity BaseCasting$225,840Machine hoursAssembly182,410Direct labor
hoursInspecting30,800Number of inspectionsSetup43,400Number of setupsMaterials
handling37,200Number of loads Activity Activity Rate begin{tabular}{lll} hline Casting & per
machine hour Assembly & per direct labor hour Inspecting & per inspection Setup & per
setup Materials handling & $ per load end{tabular} b. Use the activity rates in (a) to
determine the total and per-unit activity costs associated with each product. Round the per unit
amounts to the nearest cent. Product Total Activity Cost Activity Cost Per Unit Entry Lighting
Fixtures $$ Dining Room Lighting Fixtures $