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:

Activity Budgeted
Activity Cost
Activity Base
Casting $560,000 Machine hours
Assembly 75,000 Direct labor hours
Inspecting 30,000 Number of inspections
Setup 18,750 Number of setups
Materials handling 14,000 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 7,500 12,500 20,000
Direct labor hours 2,000 3,000 5,000
Number of inspections 500 250 750
Number of setups 150 100 250
Number of loads 400 300 700
Units produced 5,000 2,500 7,500

a. Determine the activity rate for each activity.

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 $ $