C 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 $258,440 Machine hours Assembly 158,620 Direct labor hours Inspecting 25,850 Number of inspections Setup 33,120 Number of setups Materials handing 46,060 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 5.270 4,670 9,040 Direct labor hours 4,530 6,000 11,330 Number of inspections 1,790 560 2,350 Number of setups 190 50 240 Number of loads 270 210 980 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. Check My Work Preis 560 Activity Base Entry Dining Total Machine hours 5,270 4,670 9,940 Direct labor hours 4,530 6,800 11,330 Number of inspections 1,790 2,350 Number of setups 190 50 240 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 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