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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.

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 $258,500 Machine hours
Assembly 188,640 Direct labor hours
Inspecting 27,300 Number of inspections
Setup 57,000 Number of setups
Materials handling 35,260 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 5,480 4,860 10,340
Direct labor hours 4,720 7,070 11,790
Number of inspections 1,600 500 2,100
Number of setups 310 70 380
Number of loads 650 170 820
Units produced 10,800 5,400 16,200

a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar.

Activity Activity Rate
Casting $ per machine hour
Assembly $ per direct labor hour
Inspecting $ per inspection
Setup $ per setup
Materials handling $ 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 rates to the nearest cent.

Product Total Activity Cost Activity Cost Per Unit
Entry Lighting Fixtures $ $
Dining Room Lighting Fixtures $ $

Please explain step by step how you got part B

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