Activity Rates and Product Costs using Activity-Based Costing Lonsdale 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 $3:6,620 Machine how Asembly 217,600 Director hours 45.00 Number of inspections Setup 45,900 Number of setups Materials anding 45,000 Number of 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 5,060 440 9.540 Direct labor hours 4,350 6.530 10,880 Number of inspections 2,010 640 2,650 Number of setups 240 Number of loads 770 210 980 Units produced 10,000 5.000 15.000 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Activity Activity Rate Casting permine hour Assembly per director hour Inspecting per inspection per setup Material Handling perload b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with each product. Round the per unit amounts to the nearest cent. Product Total Activity Cont Activity Cost Per Unit Entry Ughting Fixtures Dining Room Lighting Fixtures 300