Contemporary Lighting 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:

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 are provided in the table below.

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 eachproduct.

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Budgeted Activity Cost Activity Casting Assembly Inspecting Setup Materials handling Activity Base Machine hours Direct labor hours Number of inspections Number of setups Number of loads $136,800 71,100 23,680 43,800 46,350 Activity Base Machine hours Direct labor hours Number of inspections Number of setups Number of loads Units produced Entry Dining Total 1.440 3,120 1,200 1,080 4,560 3,950 1,480 730 9,015 300 3,085 1,030 12,100