Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 $28 per machine hour Assembly $34 per direct labor hour Setup $94 per setup Inspecting $20 per inspection Production scheduling $19 per production order Purchasing $10 per purchase order The activity-base usage quantities and units produced for each product were as follows: Activity Base Elliptical Machines Treadmill Machine hours 800 600 Direct labor hours 228 292 Setups 22 22 Inspections 25 32 Production orders 40 30 Purchase orders 353 125 Units produced 520 410 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Open spreadsheet Use the activity rate and usage information to calculate 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 $fill in the blank 2 $fill in the blank 3 Treadmill $fill in the blank 4 $fill in the blank 5

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

Step: 3

blur-text-image

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

Auditing The ISM

Authors: Mr. Ajoy Chatterjee

3rd Edition

8190233041, 978-8190233040

More Books

Students also viewed these Accounting questions