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 $527,000 Machine hours Assembly 112,000 Direct labor hours Inspecting 45,150 Number of inspections Setup 44,000 Number of setups Materials handling 29,450 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 5,370 11,630 17,000 Direct labor hours 4,800 3,200 8,000 Number of inspections 670 1,050 300 Number of setups 200 500 620 330 950 Number of loads 1,800 4,700 6,500 Units produced This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Previous Next 380 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar Activity Activity Rate Casting s per machine hour per direct labor hour Assembly Inspecting 5 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 rates to the nearest cent. Product Total Activity Cost Activity Cost Per Unit 5 5 Entry Lighting Fixtures $ 5 Dining Room Lighting Factures