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: Activity Casting Assembly Inspecting Setup Budgeted Activity Cost Activity Base $323,070 Machine hours 178,560 Direct labor hours 32,500 Number of inspections 41,040 Number of setups 36,450 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 hous 5,190 4,600 9,790 Direct labor hours 4,460 6,700 11,160 Number of inspections 1,900 600 2,500 Number of setups Number of loads Units produced 220 50 270 640 170 810 10,400 5,200 15,600 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar.