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Inc. manufactures stationary Bicycles and treadmills. The products are produced in the Fabrication and Assembly production departments. In addition to production activities, several other activities
Inc. 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 Cardio Care associated activity rates are as follows: Activity Activity Rate Fabrication $31 per machine hour (mh) Assembly $13 per direct labor hour (dih) Setup $50 per setup Inspecting $28 per inspection Production scheduling $15 per production order Purchasing $4 per purchase order The activity-base usage quantities and units produced for each product were as follows: Stationary Bicycle Treadmill Machine hours 2,190 1,060 Direct labor hours 450 170 Setups 40 10 Inspections 750 390 Production orders 70 40 Purchase orders 210 120 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 vour answers to two decimal olaces. A
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