Product Costs using Activity Rates Atlas Enterprises 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 Fabrication Assembly Setup Inspecting Production scheduling Purchasing Activity Rate $23 per machine hour $14 per direct labor hour $55 per setup $30 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 Machine hours Direct labor hours Setups Inspections Production orders Purchase orders Units produced Elliptical Machines Treadmill 1,709 436 47 638 1,008 170 15 383 15 121 187 199 279 Check My Work Previous Next