Product Costs using Activity Rates Hercules Inc. manufactures elliptical exercise machines and treadmills. The products are...
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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 Fabrication Assembly Setup Inspecting Production scheduling Purchasing Activity Rate $25 per machine hour $16 per direct labor hour $56 per setup $32 per inspection $17 per production order $14 per purchase order The activity-base usage quantities and units produced for each product were as follows: Activity Base Elliptical Machines Treadmill Machine hours 1,892 1,116 Direct labor hours 467 182 Setups 47 15 Inspections 732 439 Production orders 67 13 Purchase orders 204 124 Units produced 283 190 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. Total Activity Cost Activity Cost Per Unit Elliptical Machines 85,112 X $ 68.14 X Treadmill 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 Fabrication Assembly Setup Inspecting Production scheduling Purchasing Activity Rate $25 per machine hour $16 per direct labor hour $56 per setup $32 per inspection $17 per production order $14 per purchase order The activity-base usage quantities and units produced for each product were as follows: Activity Base Elliptical Machines Treadmill Machine hours 1,892 1,116 Direct labor hours 467 182 Setups 47 15 Inspections 732 439 Production orders 67 13 Purchase orders 204 124 Units produced 283 190 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. Total Activity Cost Activity Cost Per Unit Elliptical Machines 85,112 X $ 68.14 X Treadmill
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