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Product Costs using Activity Rates Hercules Inc, manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication and Assembly production departments. In

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Product Costs using Activity Rates Hercules 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 Activity Rate Fabrication $29 per machine hour Assembly $15 per direct labor hour Setup $54 per setup Inspecting $23 per inspection Production scheduling $16 per production order Purchasing $13 per purchase order The activity-base usage quantities and units produced for each product were as follows: Activity Base Elliptical Machines Treadmill Machine hours 1,733 1,022 Direct labor hours 491 191 7 Setups 62 19 666 100 Inspections Production orders 70 14 Purchase orders 206 126 Units produced 301 202 Activity Base Elliptical Machines Treadmill Machine hours 1,733 1,022 491 191 Direct labor hours Setups 62 19 Inspections 666 400 70 14 206 126 202 Production orders Purchase orders Units produced 301 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. Total Activity Cost Activity Cost Per Unit Elliptical Machines Treadmill

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