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Product costs using activity rates Body-Solid Inc. manufactures elliptical exercise machines and treadmills. The products are prouced in its Fabrication and Assembly production departments.
Product costs using activity rates Body-Solid Inc. manufactures elliptical exercise machines and treadmills. The products are prouced 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 $27 per machine hour $17 per direct labor hour $56 per setup $27 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 Base Elliptical Machines Treadmill Machine hours 1,807 1,066 Direct labor hours 486 190 Setups 42 13 Inspections 673 404 Production orders 65 13 187 114 Purchase orders Units produced 289. 194 Use the activity rate and usage information to determine the total activity cost and activity cost per unit for each product. If required, round the per unit answers to the nearest cent. Use the activity rate and usage information to determine 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 Total Activity Cost 81,549 Activity Cost Per Unit Treadmill
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