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 $20 per machine hour Assembly $17 per direct labor hour Setup $46 per setup Inspecting $23 per inspection Production scheduling $18 per production order Purchasing $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 1,841 1,086 Direct labor hours 438 171 Setups Inspections Production orders Purchase orders 211 129 Units produced 269 180 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 Activity-Based Costing for a Service Company atients. The hospital has Crosswinds Hospital plans to use activity-based costing to assign hospital Indirect costs to the care Identified the following activities and activity rates for the hospital indirect costs: Activity Activity Rate Room and meals $171 per day Radiology $241 per image Pharmacy $60 per physician order Chemistry lab $109 per test Operating room $840 per operating room hour The activity usage information associated with the two patients is as follows: Abel Putin Cheryl Umit Number of days 4 days 10 days Number of images 5 images 8 images Number of physician orders 4 orders 6 orders Number of tests 3 tests 6 tests Number of operating room hours 4.5 hours 7 hours a. Determine the activity cost associated with each patient. Abel Putin Cheryl Umit b. Why is the total activity cost different for the two patients? apparently had a different condition that required more extensive treatment. Thus, the activity cost to is more than the activity cost of the other patient