Activity-Based Costing

CardioTrainer Equipment Company manufactures stationary bicycles and treadmills. The products are produced in the 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 follows:

Activity	Activity Rate
Fabrication	$23 per machine hour (mh)
Assembly	$12 per direct labor hour (dlh)
Setup	$40 per setup
Inspecting	$21 per inspection
Production scheduling	$14 per production order
Purchasing	$6 per purchase order

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

	Stationary Bicycle			Treadmill
Machine hours	1,940			880
Direct labor hours	390			120
Setups	50			10
Inspections	640			330
Production orders	40			30
Purchase orders	120			100
Units produced	1,000			1,000

Use the activity rate and usage information to compute the total activity costs and the activity costs per unit for each product. If required, round your answers to two decimal places.

Activity	Stationary Bicycle Activity Cost			Treadmill Activity Cost
Fabrication	$fill in the blank 1				$fill in the blank 2
Assembly	fill in the blank 3				fill in the blank 4
Setup	fill in the blank 5				fill in the blank 6
Inspecting	fill in the blank 7				fill in the blank 8
Production scheduling	fill in the blank 9				fill in the blank 10
Purchasing	fill in the blank 11				fill in the blank 12
Total	$fill in the blank 13				$fill in the blank 14
Number of units	fill in the blank 15				fill in the blank 16
Activity cost per unit	$fill in the blank 17				$fill in the blank 18