eBook Print tem 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 Fabrication Assembly Setup Inspecting Production scheduling Purchasing Activity Rate $28 per machine hour $17 per direct labor hour $48 per setup $32 per inspection $18 per production order $15 per purchase order The activity-base usage quantities and units produced for each product were as follows: Activity Base Elliptical Machines Treadmill Machine hours 1,944 1,147 Direct labor hours 428 167 Setups 54 17 Inspections 686 412 Production orders 69 14 Purchase orders 177 108 333 Check My Work