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 $ $

this is all on your opinion. you choose what you want to do.

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.