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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

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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 other activities are required to produce the two products. These activities and their associated activity rates are as follows: Activity Activity Rate Fabrication $32 per machine hour Assembly $40 per direct lobor hour Setup $86 per setup Inspecting $16 per inspection Production scheduling $15 per production order Purchasing $6 per purchase order The activity-base usage quantities and units produced for each product were as follows: Activity Base Elliptical Machines Treadmill Machine hours 650 450 Direct labor hours 236 306 Setups 32 32 Inspections 31 Production orders 30 Purchase orders 387 159 Units produced 460 260 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. 25 25 Use the activity rate and usage Information to calculate the total activity cost and activity cost per unit for each product. If requred, round the per unit answers to the nearest cent. Total Activity Cost Activity Cost Per Unit Elliptical Machines Treadmill

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