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 Assembly Inspecting Setup Materials handling $238,800 Machine hours 192,780 Direct labor hours 37,100 Number of inspections 40,600 40,170 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 Machine hours Direct labor hours Number of inspections Number of setups Number of loads Entry Dining Total 5,270 4,680 9,950 4,540 6,800 11,340 2,010 640 2,650 230 60 290 1,030 810 220 10,400 5,200 15,600 Units produced a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Activity Casting Assembly Inspecting Activity Rate per machine hour per direct labor hour per inspection per setup Setup Materials handling per load 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 Cost Activity Cost Per Unit Entry Lighting Fixtures Dining Room Lighting Fixtures