Activity rates and product costs using activity-based costing OBJ. 4 Lightsquare 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 $127,750 Machine hours Assembly 63,200 Direct labor hours Inspecting 21,330 Number of inspections Setup 28,750 Number of setups Materials handling 31,600 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 2500 1,150 3,650 Direct labor hours 960 2,200 3,160 Number of inspections 860 325 1,185 Number of setups 170 60 230 Number of loads 570 220 790 Units produced 5,541 2,128 7,669

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.