1. 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	Budgeted Activity Cost		Activity Base
   Casting	$257,250		Machine hours
   Assembly	164,220		Direct labor hours
   Inspecting	27,940		Number of inspections
   Setup	39,440		Number of setups
   Materials handling	42,720		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	5,450		4,840		10,290
   Direct labor hours	4,690		7,040		11,730
   Number of inspections	1,930		610		2,540
   Number of setups	230		60		290
   Number of loads	700		190		890
   Units produced	10,800		5,400		16,200

   a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar.

   Activity	Activity Rate
   Casting	$fill in the blank 1	per machine hour
   Assembly	$fill in the blank 2	per direct labor hour
   Inspecting	$fill in the blank 3	per inspection
   Setup	$fill in the blank 4	per setup
   Materials handling	$fill in the blank 5	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	$fill in the blank 6	$fill in the blank 7
   Dining Room Lighting Fixtures	$fill in the blank 8	$fill in the blank 9