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 $277,530 Machine hours Assembly 152,740 Direct labor hours Inspecting 22,220 Number of inspections Setup 40,040 Number of setups Materials handling 49,440 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 5,070 4,500 9,570 Direct labor hours 4,360 6,550 10,910 1,540 480 2,020 Number of inspections Number of setups 210 50 260 Number of loads 810 220 1,030 Units produced 10,000 5,000 15,000 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Machine hours 5,070 4,500 9,570 Direct labor hours 4,360 6,550 10,910 1,540 480 2,020 Number of inspections Number of setups 210 50 260 Number of loads 810 220 1,030 Units produced 10,000 5,000 15,000 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 per load Materials handling 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