eBook Calculator 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 futures. These activities and their associated budgeted activity costs and activity bases are as follows: Budgeted Activity Activity Cost Activity Base Casting $215,740 Machine hours Assembly 171,040 Direct labor hours Inspecting 35,750 Number of inspections Setup 39,300 Number setups Materials handling 41,310 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 50 Activity Base Entry Dining Total Machine hours 4,970 4,410 9,380 Direct labor hours 4,280 6,410 10,690 Number of inspections 2,090 660 2.750 Number of setups 240 300 Number of loads 640 170 310 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 4410 9,380 Direct labor hours : 4,280 6,410 10,690 Number of inspections 2,090 660 2,750 Number of setups 240 60 300 Number of loads 640170 810 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 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