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Product costs using activity rates

Body$-$Solid Inc. manufactures elliptical exercise machines and treadmills. The products 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:

Activity Activity Rate

Fabrication $$29$ per machine hour

Assembly $$14$ per direct labor hour

Setup $$53$ per setup

Inspecting $$29$ per inspection

Production scheduling $$15$ per production order

Purchasing $$12$ per purchase order

The activity$-$base usage quantities and units produced for each product were as follows:Product costs using activity rates

Body$-$Solid Inc. manufactures elliptical exercise machines and treadmills. The products 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:

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