Activity rates and product costs using activity-based costing Illuminate Inc. manufactures indoor and outdoor 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 Casting Assembly Inspecting Setup Materials handling Budgeted Activity Cost $ 328,020 $ 203,940 $ 28,350 $ 54,340 $ 44,620 Activity Base Machine hours Direct labor hours Number of inspections 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: 5 5 Activity Base Machine hours B Direct labor hours. Number of inspections. Number of setups 1 Number of loads 2 Units produced 3 Indoor Outdoor Total 5,270 4,670 9,940 4,530 6,800 11,330 1,440 450 1,890 310 70 380 770 200 970 10,400 5,200 15,600