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Body - Solid Inc. manufactures elliptical exercise machines and treadmills. The roducts are prouced in its Fabrication and Assembly production departments. In addition to production
BodySolid Inc. manufactures elliptical exercise machines and treadmills. The roducts are prouced 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:
tableActivityActivity RateFabrication$ per machine hourAssembly$ per direct labor hourSetup$ per setupInspecting$ per inspectionProduction scheduling,$ per production orderPurchasing$ per purchase order
The activitybase usage quantities and units produced for each product were as follows:
tableActivity Base,tableEllipticalMachinesTreadmillMachine hours,Direct labor hours,SetupsInspectionsProduction orders,Purchase orders,Units produced,
Use the activity rate and usage information to determine the total activity cost and activity cost per unit for each product.
Total Activity Cost
Activity Cost Per U
Elliptical machines
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