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 Materials handling Budgeted Activity Cost Activity Base $570,000 Machine hours 72,000 Direct labor hours 42,000 Number of inspections Number of setups 31,500 32,300 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 Entry Dining Total Machine hours 6,000 13,000 19,000 Direct labor hours 2,700 1,000 4,500 Number of inspections 200 720 1,000 Number of setups 270 180 450 Number of loads 570 380 950 Units produced 3,700 2,000 6,500 This information has been collected in the Microsoft Excel Online fie. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet a. Determine the activity rate for each activity. If required, round the rate to the nearest dur