corporate records were obtained..

Activity Rates and Product Costs using Activity-Based Costing Garfield 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 $279,720 Machine hours Assembly 182,240 Direct labor hours Inspecting 34,320 Number of inspections Setup 31,200 Number of setups Materials handling 36,540 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: Dining Activity Base Machine hours Entry 5,290 Total 9,990 4,700 6,830 Direct labor hours 4,560 11,390 Number of inspections 2,010 630 2,640 190 50 240 Number of setups Number of loads Units produced 690 180 870 10,600 5,300 15,900 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 rates to the nearest cent. Product Total Activity Cost Activity Cost Per Unit Entry Lighting Fixtures Dining Room Lighting Fixtures