Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Fabrication $33 per machine hour
Assembly $18 per direct labor hour
Setup $56 per setup
Inspecting $20 per inspection
Production scheduling $12 per production order
Purchasing $8 per purchase order

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

Elliptical

Activity Base

Machines

Treadmills

Machine hours 915 431
Direct labor hours 180 106
Setups 29 10
Inspections 163 183
Production orders 19 9
Purchase orders 94 50
Units produced 353 163

Required:

Use the activity rate and usage information to calculate the total activity cost and activity cost per unit for each product. Complete the Activity Tables for elliptical machines and treadmills. If required, round per-unit answers to the nearest cent.

Use the activity rate and usage information to calculate the total activity cost and activity cost per unit for elliptical machines product. Complete the Activity Table for elliptical machines. If required, round per-unit answers to the nearest cent.

Elliptical Machines
Activity Activity-
Base Activity Activity
Usage X Rate = Cost
Fabrication
Assembly
Setup
Inspecting
Production scheduling
Purchasing
Total activity cost
Number of units
Activity cost per unit

Use the activity rate and usage information to calculate the total activity cost and activity cost per unit for treadmill product. Complete the Activity Table for treadmills. If required, round per-unit answers to the nearest cent.

Treadmills
Activity Activity-
Base Activity Activity
Usage X Rate = Cost
Fabrication
Assembly
Setup
Inspecting
Production scheduling
Purchasing
Total activity cost
Number of units
Activity cost per unit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions