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	$347,550		Machine hours
   Assembly	158,480		Direct labor hours
   Inspecting	21,010		Number of inspections
   Setup	48,960		Number of setups
   Materials handling	41,160		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	5,260		4,670		9,930
   Direct labor hours	4,530		6,790		11,320
   Number of inspections	1,450		460		1,910
   Number of setups	290		70		360
   Number of loads	770		210		980
   Units produced	10,400		5,200		15,600

   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

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