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 Casting Assembly Inspecting Budgeted Activity Cost Activity Base $570,000 Machine hours 80,000 Direct labor hours 42,000 Number of inspections 38,000 Number of setups 23,750 Number of loads Setup Materials handling 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 Machine hours Entry 6,000 3,000 Dining 13,000 2,000 Total 19,000 5,000 1,000 600 400 Direct labor hours Number of inspections Number of setups Number of loads 300 200 500 450 500 950 Previous Check My Work PCLIVITY 15W TULI Machine hours 6,000 13,000 19,000 5,000 3,000 2,000 400 1,000 Direct labor hours Number of inspections Number of setups Number of loads Units produced 600 300 200 500 500 950 450 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 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 Patures per load Previous Check My Work Gradine