4) Vargas and Son, manufacture elliptical exercise machines and treadmills. The products are produced in its Fabrication and Assembly production departments. In addition to production activities, several other activities are required to produce the two products. These activities and their associated activity rates are as flows:

Activity Activity Rate

Fabrication $28/machine hr

Assembly $20/direct labor hr

Setup $75/set up

Inspecting $30/inspection

Production Scheduling $12/production order

Purchasing $8/purchase order

The activity-base usage quantities and units produced for each product were as follows:

Activity Base Elliptical Machines Treadmill

Machine hours 700 600

Direct labor hrs 182 64

Setups 20 15

Inspections 10 16

Production orders 30 20

Purchase orders 56 75

Units produced 400 250

Use the activity rate and usage information to calculate the total activity cost and the

activity cost per unit for each product.