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Product Costs using Activity Rates Atlas Enterprises Ine. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication and Assembly production departments.
Product Costs using Activity Rates Atlas Enterprises Ine. 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 Rate $32 per machine hour $17 per direct labor hour $46 per setup $30 per inspection $18 per production order $15 per purchase order Setup Production scheduling The activity-base usage quantities and units produced for each product were as follows Activity Base Machine hours Direct labor hours Setups Elliptical Machines Treadmill 1,964 446 61 689 70 172 276 1,159 174 19 413 14 105 185 Production orders Purchase orders Units produced
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