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Trax Company manufactures 80 stationary bikes and 125 rowing machines with three activities Activity rates to produce these products follow Activity Activity Rate Assembly $
Trax Company manufactures 80 stationary bikes and 125 rowing machines with three activities Activity rates to produce these products follow Activity Activity Rate Assembly $ 26 per direct labor hour Purchasing $ 15 per purchase order Inspection $ 32 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 Direct labor hours Purchase orders Inspections Activity Usage Stationary Rowing Bikes Machines 340 560 20 25 23 30 Activity Usage Activity Rate Allocated Cost Overhead cost per unit-Stationary bikes Activity Cost Pool Assembly Purchasing Inspection Total allocated cost Units produced Overhead cost per unit Activity Usage Activity Rate Allocated Cost Overhead cont per unit Rewing machines Activity Cost Pool Assembly Purchasing Inspection Total allocated cost Units produced Overhead cost per unit
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