Product CostsusingActivity 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 $27per machine hour

Assembly $17per direct labor hour

Setup $47per setup

Inspecting $29per inspection

Production scheduling $18per production order

Purchasing $15per purchase order

Theactivity-baseusage quantities and units produced for each product were as follows:

Activity Base Elliptical Machines Treadmill

Machine hours 1,853 1,093

Direct labor hours 463 181

Setups 52 16

Inspections 737 442

Production orders 72 14

Purchase orders 203 124

Units 305 204

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 $ $

Treadmill $ $