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HealthTec Equipment Company manufactures stationary bicycles and treadmills. The products are produced in the Fabrication and Assembly production departments. In addition to production activities,
HealthTec 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 Fabrication Assembly Setup Inspecting Production scheduling Purchasing Activity Rate $28 per machine hour (mh) $13 per direct labor hour (dlh) $40 per setup $25 per inspection $15 per production order $6 per purchase order The activity-base usage quantities and units produced for each product were as follows: Stationary Bicycle Treadmill Machine hours 2,080 980 Direct labor hours 410 210 Setups 60 10 Inspections 760 420 Production orders 50 30 Purchase orders 200 90 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. Activity Stationary Bicycle Activity Cost Treadmill Activity Cost Fabrication Assembly Setup Inspecting Production scheduling Purchasing Total Number of units Activity cost per unit
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