Activity Tates and product costs using activity-based costing Idris 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 Budgeted Activity Cost Activity Base Assembly Inspecting Setup Materials handling $640,000 Machine hours 125,000 Direct labor hours 30,000 Number of inspections 28,000 Number of setups 20,000 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 7,500 12,500 20,000 Direct labor hours 3,000 2,000 5,000 Number of inspections 200 400 600 Number of setups 150 200 350 Number of loads 400 600 1,000 Units produced 5,000 4,000 9,000 a. Determine the activity rate for each activity. Activity Casting Assembly Inspecting Setup Activity Rate per machine hour per direct labor hour per inspection 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 Activity Cost Per Unit Entry Lighting Fixtures Dining Room Lighting Fixtures Total Activity Cost