question

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 $24 per machine hour (mh) Assembly $16 per direct labor hour (dih) Setup $40 per setup Inspecting $22 per inspection Production scheduling $19 per production order Purchasing $6 per purchase order The activity-base usage quantities and units produced for each product were as follows: Stationary Bicycle Treadmill Machine hours 2.100 990 Direct labor hours 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 Treadmill Activity Cost Activity Cost Fabrication Assembly Activity Setup Inspecting Production scheduling Purchasing Total Number of units Activity cost per unit Product Cost Concept of Product Costing Voice Com Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 4,540 cellular phones are as follows: Variable costs: Fixed costs: Direct materials $65 per unit Factory overhead $199,000 Direct labor 35 Selling and administrative expenses 71,600 Factory overhead 23 Selling and administrative expenses 23 Total $146 per unit Voice Com wants a profit equal to a 15% rate of return on invested assets of $598,700. a. Determine the amount of desired profit from the production and sale of 4,540 cellular phones. b. Determine the product cost and the cost amount per unit for the production of 4,540 cellular phones. If required, round your answer to nearest dollar. $ per unit c. Determine the product cost markup percentage (rounded to two decimal places) for cellular phones. % d. Determine the selling price of cellular phones. Round to the nearest dollar. Cost $ per unit Markup Selling price per unit