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 $315,270 Machine hours 220,210 Direct labor hours 37,760 Number of inspections 49,170 Number of setups 34,400 Number of loads 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 Entry Dining Total Machine hours 5,390 4,780 10,170 Direct labor hours 4,640 6,950 11,590 Number of inspections, 1,790 570 2,360 Number of setups 270 60 330 Number of loads 680 180 860 Units produced 10,800 5,400 16,200 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Check My Work Previous Next