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Allocating overhead costs and computing overhead cost per unit using activity-based costing Trax Company manufactures 75 stationary bikes and 100 rowing machines with three activities.

Allocating overhead costs and computing overhead cost per unit using activity-based costing

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Trax Company manufactures 75 stationary bikes and 100 rowing machines with three activities. Activity rates to produce these products follow. Activity Assembly Purchasing Inspection Activity Rate $ 20 per direct labor hour $ 10 per purchase order $ 25 per inspection Activity usage for each product follows. Compute the overhead cost per unit for the stationary bikes and the rowing machines. (Round Overhead per unit amounts to 2 decimal places.) Activity Cost Driver Direct labor hours Purchase orders Inspections Activity Usage Stationary Rowing Bikes Machines 300 500 18 15 20 12 Activity Rate Allocated Cost Overhead cost per unit,Stationary bikes Activity Cost Pool Activity Usage Assembly Purchasing Inspection Total allocated cost Units produced Overhead cost per unit $ Activity Rate Allocated Cost Overhead cost per unitRowing machines Activity Cost Pool Activity Usage Assembly Purchasing Inspection Total allocated cost Units produced Overhead cost per unit $ 0

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