Activity Activity Rate Casting $ 29 X per machine hour Assembly $ 15 per direct labor hour Inspecting $ 12 per inspection Setup $ 146 per setup Materials handling $ 50 per load 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 $ Feedback Check My Work a. Budgeted Activity Cost = Total Activity-Base Usage = Activity Rate for each activity b. Calculate for each product: Activity-Base Usage x Activity Rate from Req. (a) = Activity cost for each activity. Sum all activity costs to obtain the total cost per product. Divide total costs by number of units to obtain activity cost per unit. 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 Budgeted Activity Cost Activity Base $287,100 Machine hours Casting Assembly 163,650 Direct labor hours Inspecting 25,200 Number of inspections Setup 43,800 Number of setups Materials handling 47,500 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 5,070 4,500 9,570 Direct labor hours 4,360 6,550 10,910 Number of inspections 1,600 500 2,100 Number of setups 240 60 300 Number of loads 750 200 950 Units produced 10,000 5,000 15,000 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar