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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 Fabrication Activity Rate $25 per machine hour $13 per direct labor hour Assembly Setup $50 per setup $21 per inspection Inspecting Production scheduling $14 per production order Purchasing $11 per purchase order The activity-base usage quantities and units produced for each product were as follows: Activity Base Elliptical Machines Treadmill Machine hours 1,975 1,165 Direct labor hours 445 174 Setups 48 15 Inspections 663 398 72 14 Production orders Purchase orders 183 112 Units produced 315 211 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 II II Treadmill

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