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 $254,800 Machine hours Assembly 178,720 Direct labor hours Inspecting 23,660 Number of inspections Setup 49,500 Number of setups Materials handling 40,890 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 5.190 4,610 9,800 Direct labor hours 4470 6,700 11,170 Number of inspections 1.380 440 1.020 Number of setups 270 60 330 Number of loads 690 180 870 Units produced 10,400 5,200 15,600 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. 4,610 6.700 440 690 180 870 Machine hours 5,190 9,800 Direct labor hours 4,470 11,170 Number of inspections 1,380 1,820 Number of setups 270 60 330 Number of loads Units produced 10,400 5,200 15,600 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Activity Activity Rate Casting per machine hour Assembly per direct labor hour Inspecting per inspection Setup per 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