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Product costs using Activity Rates Cardio Care Inc. manufactures stationary bicycles 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 Rate Activity $32 per machine hour Fabrication Assembly $12 per direct labor hour Setup $60 per setup Inspecting $30 per inspection Production scheduling $13 per production order Purchasing $11 per purchase order