Activity Rates and Product Costs using Activity-Based Cosiing Lonsdale Inc. manufactures entry and dining room lighting xtures. Five activities are used in manufacturing the xtures. These activities and their associated budgeted activity costs and activity bases are as foilows: Budgeted Activity Activity Cost Activity Base Casting $310,400 Machine hours Assembly 170,100 Direct labor hours Inspecting 32,760 Number of inspections Setup 36,960 Number of setups Materials handling 44,180 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 5,270 4,680 9,950 Direct labor hours 4,540 6,800 1 1,340 Number of inspections 2,070 660 2,730 Number of setups 230 50 280 Number of loads 3'40 200 940 Uniis produced 10,400 5,200 15,600 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Activity Activity Rate Casting D per machine hour Assembly D per direct labor hour Inspecting D per inspection Setup ${:] per setup Materials handling E per load Ia. 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 Gent. Product Total Activity Cost Activity Cost Per Unit Dining Room Lighting Fixtures E D