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Atlas Enterprises Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication and Assembly production departments. In addition to production activities,
Atlas Enterprises Inc. manufactures 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 follows: Activity Activity Rate $20 per machine hour Fabrication Assembly Setup Inspecting Production scheduling $12 per direct labor hour $46 per setup $21 per inspection $13 per production order $10 per purchase order Purchasing The activity-base usage quantities and units produced for each product were as follows: Activity Base Elliptical Machines Treadmill Machine hours 1,759 1,038 Direct labor hours 480 187 Setups 56 17 Inspections 683 410 Production orders 77 15 Purchase orders 203 124 Units produced 290 194 Use the activity rate and usage information to calculate the total activity cost and activity cost per unit for each product. If required, round the per unit answers to the nearest cent. Total Activity Cost Activity Cost Per Unit Elliptical Machines 60,890 209.9 X Treadmill 33,831 174.3 x
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