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Product costs using activity rates Setup Hercules Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication and Assembly production departments.

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Product costs using activity rates Setup 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 $25 per machine hour Assembly $31 per direct labor hour $94 per setup Inspecting $18 per inspection Production scheduling $17 per production order Purchasing $8 per purchase order The activity base usage quantities and units produced for each product were as follows: Activity Base Elliptical Machines Treadmill Machine hours 800 550 Direct labor hours 186 228 Setups 37 37 Inspections 38 4 Production orders 30 Purchase orders 346 115 Units produced 500 350 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the requred analysis, and input your answers in the question below Use the activity and women to calculate the total activity cost and activity cost per unit for each product. If required, round the per units to the nearest cent Total Activity Cost Activity Cost Per Unit Chipocal Machines Activity rates and product costs using activity-based costing Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Budgeted Activity Activity Cost Activity Base Casting $432,000 Machine hours Assembly 114,000 Direct labor hours Inspecting 36,000 Number of inspections Setup 46,000 Number of setups Materials handling 20,700 Number of loads Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity base usage quantities and units produced follow: Activity Base Entry Dining Total Machine hours 5,680 12,320 18,000 Direct labor hours 3,600 2,400 6,000 Number of inspections 570 430 1,000 Number of setups 300 200 500 Number of loads 200 700 900 Units produced 2,600 4,900 7,500 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar Activity Activity Rate Casting $ 31 Xper machine hour Assembly $ per direct labor hour Inspecting $ per inspection Setu $ per setup Materials handling $ per load b. Use the activity rates in (a) to determine the total and per unit activity costs associated with each product. Round the per un rates to the nearest cent Product Total Activity Cost Activity Cost Per Unit Entry Lighting Factures $ $ Dining Room Lighting Fixtures $ Activity-based costing for a service company Crosswinds Hospital plans to use activity based costing to assign hospital indirect costs to the care of patients. The hospital has identified the following activities and activity rates for the hospital indirect costs: Activity Activity Rate Room and meals $270 per day Radiology $230 per image Pharmacy $.30 per physican order Chemistry tab $90 per test Operating room $740 per operating oor hour The activity age information associated with the two patients is as follows: Abel Putin Cheryl Limit Number of days Number of mages 3 images 2 images Number of physician orders orders 4 orders Number of tests 5 tests Number of operating room hours 7 hours 3 hours This information has been collected in the Microsoft Excel Online file Open the spreadsheet, perform the record analysis, and in your answers in the gestion below Open spreadsheet a. Determine the activity cost associated with each patient. Abel Putin 7,690 X Cheryl Um . Why is the total vity cost different for the two patients? Abel Putin apparently had a different condition that required more extensive treatment. Thus, the activity cost to Abel Putin is more than the activity cost of the other potent

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