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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 prod products. These activities and their associated activity rates are as follows: Activity Fabrication Assembly Setup Inspecting Production scheduling Purchasing Activity Rate $23 per machine hour $14 per direct labor hour $52 per setup $32 per inspection $15 per production order $12 per purchase order The activity-base usage quantities and units produced for each product were as follows: Activity Base Elliptical Machines Treadmill Machine hours 1,908 1,126 Direct labor hours 477 186 Setups 59 18 Inspections 738 443 Production orders 65 13 Purchase orders 208 273 127 183 Units produced 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. Elliptical Machines Treadmill Total Activity Cost $ $ Activity Cost Per Unit
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