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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 Casting Assembly Inspecting Setup Materials handling 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 Machine hours Direct labor hours Number of inspections Number of setups Number of loads Units produced a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar Activity Casting Assembly Inspecting Setup Materials handling 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 Entry Lighting Fixtures Dining Room Lighting Fixtures Activity Cost Activity Base $238,510 Machine hours 189,120 25,740 36,500 38,220 Direct labor hours Number of inspections Number of setups Number of loads Entry Dining Total 5,5004,870 10,370 4,730 7,090 11,820 1,980 250 980 11,000 5,500 16,500 1,500 200 770 480 50 210 Activity Rate per machine hour per direct labor hour per inspection per setup per load Total Activity Cost Activity Cost Per Unit

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