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eBook Print Item Product Costs using Activity Rates Hercules Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication and Assembly

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eBook Print Item Product Costs using Activity Rates Hercules Inc. manufactures elliptical exercise machines 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 Activity Rate Fabrication $24 per machine hour Assembly $8 per direct labor hour Setup $55 per setup Inspecting $29 per inspection Production scheduling $9 per production order Purchasing $6 per purchase order The activity-base usage quantities and units produced for each product were as follows: Activity Base Elliptical Machines Treadmill Machine hours 1,989 1,174 Direct labor hours 488 190 Setups 49 Inspections 671 403 Production orders 63 Purchase orders 171 104 Units produced 303 203 Use the activity rate and usage information to determine the total activity cost and activity cost per unit for each product. If required, round the per unit answers to the nearest cent. Total Activity Cost Activity Cost Per Unit Elliptical Machines Treadmill Previous Next Check My Work Save and Exit Submit Assignment for Gr All work saved

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