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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
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 serveral other activities are required to produce the two products. These activities and their associated activity rates are as follows: Activity Activity Rate Fabrication 126 per machine hour Assembly 514 per direct labor hour Set $45 per setup Inspecting 527 per inspection Production scheduling $15 per production order Purchasing 512 per purchase order The activity quantities and units produced for each product were as follows Activity Base Elliptical Machines Treadmill Machine hours 2,010 Direct labor hours 452 176 Setups 42 13 Trapection 030 30 Production orders 67 13 Purchase anders 176 Units produced 316 212 Use the activity rate ad 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 107 Activity Activity Rate Fabrication $26 per machine hour Asembly $14 per direct labor hour Setup 14 per Inspecting 127 per inspection Production scheduling $15 per production order Purchasing $12 e purchase order The activity-bate usage quantities and units produced for each product were as follows Activity flase Elliptical Machines Treadmill Machine hours 2,010 1.186 Direct labor how 452 176 Setups 42 12 Inspections 639 383 Production orders 67 13 Purchase orders 176 107 Units noduced 316 212 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 cont. Total Activity Cost Activity Cost Per Unit Eliptical Machines Treadmill
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