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 Cost Activity Base Activity Casting Assembly Inspecting Setup Materials handling $222,720 Machine hours 211,600 Direct labor hours 47,260 Number of inspections 43,800 51,480 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: Activity Base Entry Dining Total Machine hours 4,920 4,360 9,280 Direct labor hours. 4,230 6,350 10,580 Number of inspections 2,110 670 2,780 Number of setups 240 60 300 Number of loads 780 210 990 Units produced 9,800 4,900 14,700 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Activity Activity Rate per machine hour Casting Assembly per direct labor hour Inspecting S per inspection: Setup $ per setup per load 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 amounts to the nearest cent. Product Entry Lighting Fixtures Dining Room Lighting Fixtures Total Activity Cost Activity Cost Per Unit