4 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: Activity Casting Assembly Budgeted Activity Cost $496,000 Activity Base Machine hours 60,000 Direct labor hours 43,050 Number of inspections 41,250 Number of setups 20,900 Inspecting Setup Materials handling 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 5,050 10.950 16,000 Direct labor hours 2,400 1,600 4,000 Number of inspections 340 710 1,050 Number of setups 330 220 550 Number of loads 380 570 950 Units produced 1,500 5,000 6,500