eBook acargard 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 $280,500 Machine hours Assembly 170,560 Direct labor hours Inspecting 30,680 Number of inspections Setup 40,600 Number of setups Materials handling 55,590 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 4,960 4,390 9,350 Direct labor hours 4,260 6,400 10,660 Number of Inspections 1,790 570 2,360 Number of setups 230 60 290 Number of loads 860 230 1,090 Units produced 9,800 4,900 14,700 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar Previous Next Check My Save and Exit Submit Assignment for Gr All work saved 860 Machine hours 4,960 4,390 9,350 Direct labor hours 4,260 6,400 10,660 Number of inspections 1,790 570 2,360 Number of setups 230 60 290 Number of loads 230 1,090 Units produced 9,800 4,900 14,700 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 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 neare cent. Product Total Activity Cost Activity Cost Per Unit Entry Lighting Fixtures per load Dining Room Lighting Fixtures