1. Activity-Based Costing

   HealthTec 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	$28 per machine hour (mh)
   Assembly	$11 per direct labor hour (dlh)
   Setup	$40 per setup
   Inspecting	$25 per inspection
   Production scheduling	$13 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	2,040			860
   Direct labor hours	430			180
   Setups	50			10
   Inspections	660			400
   Production orders	50			40
   Purchase orders	180			80
   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