1. 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:

1. 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:

Activity	Budgeted Activity Cost	Activity Base
Casting	$650,000	Machine hours
Assembly	85,000	Direct labor hours
Inspecting	28,000	Number of inspections
Setup	15,750	Number of setups
Materials	12,000	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
Casting	7,500	12,500	20,000
Assembly	2,000	3,000	5,000
Inspecting	500	250	750
Setup	150	100	250
Materials	400	300	700
Units produced	5,000	2,500	7,500

1. Determine the activity rate for each activity.
2. Use the activity rates in (a) to determine the total and per-unit activity costs associated with each product.

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
Casting	7,500	12,500	20,000
Assembly	2,000	3,000	5,000
Inspecting	500	250	750
Setup	150	100	250
Materials	400	300	700
Units produced	5,000	2,500	7,500

1. Determine the activity rate for each activity.
2. Use the activity rates in (a) to determine the total and per-unit activity costs associated with each product.