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Trax Company manufactures 75 stationary bikes and 100 rowing machines with three activities. Activity rates to produce these products follow. Activity Assembly Purchasing Inspection
Trax Company manufactures 75 stationary bikes and 100 rowing machines with three activities. Activity rates to produce these products follow. Activity Assembly Purchasing Inspection Activity Rate $20 per direct labor hour $10 per purchase order $25 per inspection Activity usage for each product follows. Compute the overhead cost per unit for the stationary bikes and the rowing machines. (Round Overhead per unit amounts to 2 decimal places.) Activity Usage Stationary Activity Cost Driver Bikes Rowing Machines Direct labor hours i 300 500 Purchase orders 12 18 Inspections 15 20 Overhead cost per unit-Stationary bikes Activity Cost Pool Assembly Purchasing Inspection Total allocated cost Units produced Activity Usage Overhead cost per unit Overhead cost per unit-Rowing machines Activity Cost Pool Assembly Purchasing Activity Rate Allocated Cost Activity Usage Activity Rate Allocated Cost
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