eBook 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 Casting Assembly $267,960 Machine hours 189,540 Direct labor hours Inspecting Setup Materials handling 39,000 Number of inspections 52,360 Number of setups 54,500 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 Machine hours Entry Dining Total 4,900 4,340 9,240 Direct labor hours 4,210 6,320 10,530 Number of inspections 1,980 620 2,600 Number of setups 280 60 340 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. Activity Casting Assembly Activity Rate. per machine hour per direct labor hour