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                       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:

A. Determine the activity rate for each activity.

B. Use the activity rates in (A) to determine the total and per-unit activity costs associated with each product.

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Activity Base Machine hours Direct labor hours Number of inspections Number of setups Number of loads Units produced Entry 7,500 2,000 500 150 400 5,000 Dining 2,500 3,000 250 100 300 2,500 Total 20,000 5,000 750 250 700 7,500