Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 Activity Rate
Fabrication $33 per machine hour (mh)
Assembly $11 per direct labor hour (dlh)
Setup $50 per setup
Inspecting $30 per inspection
Production scheduling $13 per production order
Purchasing $8 per purchase order

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

Stationary Bicycle Treadmill
Machine hours 2,180 1,070
Direct labor hours 430 170
Setups 30 20
Inspections 720 410
Production orders 70 30
Purchase orders 180 120
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 $ $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Charles T. Horngren, Walter T. Harrison

7th Edition

0132439603, 9780132439602

More Books

Students also viewed these Accounting questions

Question

Describe four common misunderstandings of Gestalt psychology.

Answered: 1 week ago