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: Budgeted Activity Activity Cost Activity Base Casting Assembly Inspecting Setup Materials handling $324,390 Machine hours 179,360 Direct labor hours 31,850 Number of inspections 45,870 42,140 Number of setups 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 5,210 4,620 9,830 Direct labor hours 4,480 6,730 11,210 Number of inspections 1,860 590 2,450 Number of setups 270 60 330 Number of loads 770 210 980 Units 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