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Activity Rates and Product Costs using Activity-Based Costing Garfield Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures costs and activity bases are as follows: Budgeted Activity Casting Assembly Inspecting Setup Materials handling Activity Cost Activity Base $560,000 Machine hours 75,000 30,000 18,750 14,000 Direct labor hours Number of inspections Number of setups Number of loads Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity Entry DiningTotal 7,500 12,500 20,000 2,000 3,000 5,000 750 250 700 5,000 2,500 7,500 Activity Base Machine hours Direct labor hours 500 150 400 250 100 300 Number of inspections Number of setups Number of loads Units produced Check My Work All work saved. 6 8