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 $570,000 Machine hours 80,000 Direct labor hours Casting Assembly Inspecting Setup Materials handling 42.000 Number of inspections 38,000 Number of setups 23,750 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 5,000 13,000 19,000 Direct labor hours 3,000 2,000 5,000 Number of inspections 600 400 1,000 Number of setups 300 200 500 Number of loads 450 500 950 Units produced 6,000 3,000 9.000 a. Determine the activity rate for each activity Activity Activity Rate Casting per machine hour Assembly $ per direct labor hour Inspecting per inspection Setup per setup Materials handling per load hile the activity rates in alto determine the intal and nerunt activity costs assnriated with each nmdict Round th Materials handling Number of setups Number of loads 23,750 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 Tota! Machine hours 16,000 13,000 Direct labor hours 19,000 3,000 2,000 Number of inspections 5,000 600 400 Number of setups 1,000 300 200 Number of loads 500 450 500 050 Units produced 6,000 3,000 9,000 a. Determine the activity rate for each activity Activity Activity Rate Casting per machine hour Assembly 9 per direct labor hour Inspecting $ per inspection Setup $ Der 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