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 Cost Activity Base Activity Casting Assembly Inspecting 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: Activity Base Machine hours Direct labor hours Number of inspections 1,620 510 2,130 Number of setups Number of loads Units produced 331,100 Machine hours 215,600 Direct labor houns 36,210 36,180 44,590 Number of inspections Number of setups Number of loads Entry Dining Total 5,010 4,450 9,460 4,310 6,470 10,780 270 910 10,000 5,000 15,000 220 50 720 190