Activity	Budgeted Activity Cost		Activity Base
Casting	$249,750		Machine hours
Assembly	182,240		Direct labor hours
Inspecting	28,600		Number of inspections
Setup	57,760		Number of setups
Materials handling	41,650		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	5,290		4,700		9,990
Direct labor hours	4,560		6,830		11,390
Number of inspections	1,670		530		2,200
Number of setups	310		70		380
Number of loads	670		180		850
Units produced	10,600		5,300		15,900

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