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 $325,040 Machine hours Casting Assembly 185,300 Direct labor hours Inspecting 32.340 Number of inspections 47,430 Number of setups Setup Materials handling 51,480 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 5,070 4.490 9,560 Direct labor hours 4,360 6,540 10,900 Number of inspections 1,760 550 2,310 Number of setups 250 60 310 Number of loads 780 210 990 Units produced 10,000 5,000 15,000 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Activity Activity Rate Casting 5 34 per machine hour Assembly s 17 per direct labor hour inspecting s 14 per inspection Setup 153 per setup Materials handling 5 52 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 34.99 Dining Room Lighting Fixtures 5