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 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 Activity Rate $30 per machine hour $13 per direct labor hour $52 per setup $22 per Inspection $14 per production order $11 per purchase order Elliptical Machines Treadmill 1,878 453 61 660 71 195 240 1,108 19 396 119 161