Business, 14.02.2021 06:20 acornelas7128

Hercules Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its 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
$29 per machine hour
Assembly
$15 per direct labor hour
Setup
$48 per setup
Inspecting
$26 per inspection
Production scheduling $16 per production order
Purchasing
$13 per purchase order
The activity-base usage quantities and units produced for each product were as follows:
Activity Base Elliptical Machines Treadmill
Machine hours
1,983
1,170
Direct labor hours
163
Setups
61
Inspections
601
361
Production orders
69
Purchase orders
189
Units produced
285
191
Use the activity rate and usage information to determine the total activity cost and activity cost per unit for each product. If required, round the per unit answers to the nearest cent.
Total Activity Cost Activity Cost Per Unit
Elliptical Machines
417
19
14
115
Treadmill
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Hercules Inc. manufactures elliptical exercise machines and treadmills. The products are produced in...

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