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Product Costs using Activity Rates Atlas Enterprises Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication and Assembly production
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 $25 per machine hour $17 per direct labor hour $49 per setup $20 per Inspection $18 per production order $15 per purchase order The activity base usage quantities and units produced for each product were as follows: Activity Bese Elliptical Machines Treadmill 1. Machine hours 1,994 1,176 Direct labor hours 458 179 Setupe 52 16 Inspections 629 377 Production orders 71 14 Purchase orders 184 270 112 181 units produced Use the activity rate and usage information to calculate 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 Check My Work Total Activity Cost Activity Cost Per Unit Previous Email Instructor Save and Exit Submit Assignment for Grading
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