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Trax Company manufactures 75 stationary bikes and 125 rowing machines with three activities. Activity rates to produce these products follow. Activity Activity Rate Assembly $
Trax Company manufactures 75 stationary bikes and 125 rowing machines with three activities. Activity rates to produce these products follow.
Activity | Activity Rate | |
---|---|---|
Assembly | $ 25 | per direct labor hour |
Purchasing | $ 10 | per purchase order |
Inspection | $ 30 | 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 Cost Driver | Activity Usage | |
---|---|---|
Stationary Bikes | Rowing Machines | |
Direct labor hours | 320 | 560 |
Purchase orders | 16 | 22 |
Inspections | 19 | 26 |
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