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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

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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 $333,540 Machine hours 190,060 Direct labor hours 25,340 Number of inspections 44,800 Number of setups 41,310 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 Machine hours Entry Dining Total 5.200 4.610 9,010 Direct labor hours 4,470 6,710 11,100 Number of inspections 1.300 430 1.010 Number of setups 260 60 320 Number of loads 640 170 010 Units produced 10,400, 5,200 15,000 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Activity Casting Assembly Inspecting Setup Materials handling Activity Rate per machine hour per direct labor hour per inspection per setup per load

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