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 $247,000 Machine hours Assembly 225,200 Direct labor hours Inspecting 41,990 Number of inspections Setup 55,440 Number of setups Materials handling 34,400 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 Machine hours 5,240 4,640 Direct labor hours 4,500 6,760 11,260 Number of inspections 590 2,470 Number of setups Number of loads Units produced 10,400 15,600 Total 9,880 1,880 290 70 360 680 180 860 5,200 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 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