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 $31 per machine hour Assembly $11 per direct labor hour Setup $50 per setup Inspecting $31 per inspection Production scheduling $12 per production order Purchasing $9 per purchase order The activity-base usage quantities and units produced for each product were as follows: Activity Base Elliptical Machines Treadmill Machine hours 2,009 1,185 Direct labor hours 409 160 Setups 57 18 Inspections 731 439 Production orders 68 14 Purchase orders 171 104 Units produced 288 193 Use the activity rate and usage formation 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 Previous Next