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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 $352,240 Machine hours Assembly 165,340 Director hours Inspecting 19.690 Number of inspections Setup 43,840 Number of setups Materials handling 42,720 Number of foods 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 5,490 4,670 10.366 Direct ut labor hours 4,720 7,090 11,810 Number of inspections 1.560 1.790 Number of setups 260 60 320 Number of loads 700 190 890 Units produced 11,000 5,500 16.500 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 lond 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 nearest cent. Product Total Activity Cost Activity Cost Per Unit Entry Lighting Postures Dining Room Lighting Fixtures 430