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Activity Rates and Product Costs using Activity-Based Costing Lonsdale Inc. manufactures entry and dining room lighting fixtures. Fre 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 $342,040 Machine hours Assembly 229,400 Direct labor hours Inspecting 35,020 Number of inspections Setup 52,170 Number of setups Materials handling 40,560 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 hour 5.330 4.730 10.000 Direct labor hours 4,590 6,080 11.470 Number of inspections 1,570 490 2.000 Number of setups 300 70 370 Number of loads 220 1,040 Units produced 10,600 5,300 15.900 820 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

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