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 $374,000 Machine hours 35,000 Direct labor hours 33,250 Number of inspections 39,500 Number of setups 39,600 Number of loads i 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 5,370 11,630 17,000 Direct labor hours 1,500 1,000 2,500 Number of inspections 580 370 950 Number of setups 300 200 500 Number of loads 390 510 900 Units produced 4,400 3,600 8,000