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 $20 per machine hour
Assembly $10 per direct labor hour
Setup $55 per setup
Inspecting $28 per inspection
Production scheduling $11 per production order
Purchasing $8 per purchase order

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

Activity Base Elliptical Machines Treadmill
Machine hours 1,801 1,063
Direct labor hours 478 186
Setups 59 18
Inspections 629 377
Production orders 65 13
Purchase orders 174 106
Units produced 280 188

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.

Total Activity Cost Activity Cost Per Unit
Elliptical Machines $fill in the blank 1 $fill in the blank 2
Treadmill $fill in the blank 3 $fill in the blank 4

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_2

Step: 3

blur-text-image_step3

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

Cornerstones Of Financial Accounting

Authors: Jay Rich, Jefferson Jones, Maryanne Mowen, Don Hansen, Donald Jones, Ralph Tassone

2nd Canadian Edition

ISBN: 0176707123, 978-0176707125

More Books

Students also viewed these Accounting questions

Question

What is the multiple correlation Rxy?

Answered: 1 week ago