Activity Rates and Product Costs using Activity-Based Costing Garfield 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 Casting Assembly Inspecting Setup Materials handling $229,500 Machine hours 167,520 Direct labor hours 30,940 Number of inspections 50,660 Number of setups 43,600 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 4,870 4,310 9,180 Direct labor hours 4,190 6,280 10,470 Number of inspections 1,810 570 2,380 Number of setups 280 60 340 Number of loads 860 230 1,090 Units produced 9,600 4,800. 14,400 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Activity Activity Rate Casting 25 per machine hour Assembly 16 per direct labor hour Inspecting 13 per inspection