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:
Budgeted
Activity Activity Cost Activity Base
Casting $570,000
Assembly 80,000
Inspecting 42,000
Setup 38,000
Materials handling 23,750
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
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.
Product Total Activity Cost Activity Cost Per Unit
Entry Lighting Fixtures $265,420 $27
Dining Room Lighting Fixtures $ 238,900 $48

An employer who is considering hiring eva has asked donna, eva’s former supervisor, for a report on eva. in truth, eva’s work for donna has been only average. however, eva is donna’s friend, and donna knows that eva probably will not get the job if she says anything negative about eva, and donna knows that eva desperately needs the job. further, donna knows that if the situation were reversed, she would not want eva to mention her deficiencies. nevertheless, it has been donna’s policy to reveal the deficiencies of employees when she has been asked for references by employers, and she knows that some of eva’s faults may be bothersome to this particular employer. finally, this employer has leveled with donna in the past when donna has asked for a report on people who have worked for him. should donna reveal deficiencies in eva’s past performance? (remember to use one of the three moral theories acceptable for this test to solve this dilemma. any discussion of any personal opinion, religious perspective, or theory other than the moral theories acceptable for this test will result in a score of "0" for this question.)

Carlton industries is considering a new project that they plan to price at $74.00 per unit. the variable costs are estimated at $39.22 per unit and total fixed costs are estimated at $12,085. the initial investment required is $8,000 and the project has an estimated life of 4 years. the firm requires a return of 8 percent. ignore the effect of taxes. what is the degree of operating leverage at the financial break-even level of output?

In january, knox company requisitions raw materials for production as follows: job 1 $915, job 2 $1,590, job 3 $771, and general factory use $704. during january, time tickets show that the factory labor of $6,300 was used as follows: job 1 $2,344, job 2 $1,711, job 3 $1,554, and general factory use $691. prepare the job cost sheets for each of the three jobs.