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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 fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Budgeted Activity Cost Activity Base Activity Casting $252,180 Machine hours Assembly 170,400 Direct labor hours Inspecting 22,880 Number of inspections Setup 36,660 Number of setups Materials handling 50,290 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 4,950 4,390 9,340 Direct labor hours 4,260 6,390 10,650 Number of inspections 1,340 420 1,760 Number of setups 210 50 260 Number of loads 850 220 1,070 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 $