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 bates are as follows: Budgeted Activity Activity Cost Activity Base Casting $368,000 Machine hours Assembly 21,000 Direct labor hours Inspecting 34,000 Number of inspections Setup 47,000 Number of setups Materials handling 24,700 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 5,050 10,950 16,000 Direct labor hours 900 500 1,500 510 490 1.000 Number of inspections Number of setups 300 200 500 Number of loads 510 Units produced 4,600 2,400 - 7,000