Activity Rates and Product Costs using Activity-Based Costing Garfield Inc. manufactures entry and dining room lighting fixtures. ive activities are used in manufacturing the fixtures.

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Activity Rates and Product Costs using Activity-Based Costing Garfield Inc. manufactures entry and dining room lighting fixtures. ive activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: end Budgeted Activity Cost Activity Base Activity Casting $339,570 Machine hours Assembly 211,140 27,750 35,840 36,550 Number of loads Direct labor hours Number of inspections Number of setups Inspecting 8 Setup Materials handling 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 Entry Dining Total 5,450 4,840 10,290 4,690 7,040 11,730 Number of inspections 1,410 440 1,850 230 50 280 850 5,400 16,200 Activity Base Machine hours Dire ct labor hours Number of setups Number of loads 670 180 10,800 5, Units produced a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Activity Casting Assembly Activity Rate per machine hour per direct labor hour per inspection per setup per load Inspecting Setup Materials handling 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