Question 1)

Question 2)

Zeus Industries manufactures two types of electrical power units, custom and standard, which involve four factory overhead activities-production setup, procurement, quality control, and materials management. An activity analysis of the overhead revealed the following estimated activity costs and activity bases for these activities: Activity Activity Cost Activity Base Production setup $ 78,000 $ Number of setups Procurement 109,250 Number of purchase orders (PO) Quality control 161,000 Number of inspections Materials management 148,000 Number of components Total $496,250 The activity-base usage quantities for each product are as follows: Setups Purchase Orders Inspections Components Unit Volume Custom 450 BOO 1,600 450 1,000 Standard 150 350 700 350 1,000 2,000 Total 600 1,150 2,300 300 a. Determine an activity rate for each activity, Activity Rates Production Setup Procurement Quality Control Materials Management Activity cost Activity base Activity rate /setup s /POS /Inspections /component b. Assign activity costs to each product and determine the unit activity cost, using the activity rates from part (a). Round unit costs to the nearest cent. Custom Standard Setups Total Purchase Orders Total Inspections Total Components Total Total product costs $ Unit volume Unit cost $ c. Assume that each product required one direct labor hour per unit. Determine the per-unit cost if factory overhead is allocated on the basis of direct labor hours. Round your answer to the nearest cent. por unit d. The custom product will consume materials management activities than will the standard product. Activity-Based Costing Health Tec Equipment Company manufactures stationary bicycles and treadmills. The products are produced in the 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 s24 per machine hour (mh) Assembly 516 per direct labor haur (dlh) Setup $40 per setup Inspecting s22 per inspection Production scheduling $19 per production order Purchasing s6 per purchase order The activity-base usage quantities and units produced for each product were as follows: Stationary Bicycle Treadmill 990 Machine hours Direct lahor hours 2,100 440 200 Setups 40 20 Inspections 810 410 Production orders 50 20 Purchase orders 190 150 Units produced 1,000 1,000 Use the activity rate and usage information to compute the total activity costs and the activity costs per unit for each product. If required, round your answers to two decimal places. Stationary Bicycle Activity Treadmill Activity Cost Activity Cost Fabrication Assembly Setup Inspecting Production scheduling Purchasing Total Number of units Activity cost per unit