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	$25 per machine hour (mh)
Assembly	$12 per direct labor hour (dlh)
Setup	$40 per setup
Inspecting	$23 per inspection
Production scheduling	$14 per production order
Purchasing	$4 per purchase order

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

	Stationary Bicycle			Treadmill
Machine hours	1,990			1,100
Direct labor hours	390			180
Setups	40			10
Inspections	670			360
Production orders	90			10
Purchase orders	200			130
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 Assembly Setup Inspecting Production scheduling plllll!!! ) Purchasing Total bidal $ Number of units Activity cost per unit