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Cardio Trainer Equipment Company manufactures stationary bicycles and treadmills. The products are produced in the Fabrication and Assembly production departments. In addition to production activities,
Cardio Trainer Equipment Company manufactures stationary bicycles and treadmills. The products are produced in the 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 $31 per machine hour (mh) Assembly $13 per direct labor hour (dlh) Setup $50 per setup Inspecting $28 per inspection Production scheduling $15 per production order Purchasing $6 per purchase order The activity-base usage quantities and units produced for each product were as follows: Stationary Bicycle Treadmill Machine hours 2,030 950 Direct labor hours 160 Setups Inspections 720 370 Production orders 60 Purchase orders Units produced 1,000 1,000 Use the activity rate and usage information to compute the total activity costs and the activity costs per unit for each product. If required, round your answers to two decimal places. 480 40 20 10 200 150 Stationary Bicycle Treadmill Use the activity rate and usage information to compute the total activity costs and the activity costs per unit for each product. If required, round your answers to two decimal places. Stationary Bicycle Treadmill Activity Activity Cost Activity Cost Fabrication $ Assembly Setup Inspecting Production scheduling Purchasing Total Number of units Activity cost per unit s
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