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 $216,200 Machine hours 182,240 Direct labor hours 23,800 Number of inspections 47,940 45,000 Number of setups 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 4,980 4,420 9,400 Direct labor hours 4,290 6,430 10,720 Number of inspections 1,290 410. 1,700 Number of setups 2801 60 340 Number of loads 790 210 1,000 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.