Atlas Enterprises Inc. manufactures elliptical exercise machines and treadmils. 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 Fabrication Assembly Setup Inspecting Production scheduling Activity Rate $26 per machine hour $10 per direct labor hour $45 per setup $26 per inspection $11 per production order Purchasing $8 per purchase order The activity-base usage quantities and units produced for each product were as follows: Activity Base Elliptical Machines Treadmill Machine hours 1,941 1,145 Direct labor hours 454 177 Setups 60 19 Inspections 713 428 Production orders 70 14 Purchase orders 190 116 Units produced 304 204