1. 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	$325,710		Machine hours
   Assembly	202,500		Direct labor hours
   Inspecting	33,150		Number of inspections
   Setup	36,480		Number of setups
   Materials handling	42,750		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	5,230		4,640		9,870
   Direct labor hours	4,500		6,750		11,250
   Number of inspections	1,680		530		2,210
   Number of setups	190		50		240
   Number of loads	750		200		950
   Units produced	10,400		5,200		15,600

   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 amounts to the nearest cent.

   Product	Total Activity Cost	Activity Cost Per Unit
   Entry Lighting Fixtures	$	$
   Dining Room Lighting Fixtures	$	$