Product Costs using Activity Rates 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: ActivityActivity Rate Fabrication $30 per machine hour Assembly $35 per direct labor hour Setup $90 per setup Inspecting $20 per inspection Production scheduling $19 per production order Purchasing $5 per purchase order The activity-base usage quantities and units produced for each product were as follows: Activity BaseElliptical MachinesTreadmill Machine hours600 400 Direct labor hours190 223 Setups30 30 Inspections15 25 Production orders40 30 Purchase orders318 85 Units produced500 320 Use the activity rate and usage information to determine the total activity cost and activity cost per unit for each product. Complete the Activity Tables for elliptical machines and treadmills. If required, round per-unit answers to the nearest cent. Use the activity rate and usage information to calculate the total activity cost and activity cost per unit for elliptical machines product. Complete the Activity Table for elliptical machines. If required, round per-unit answers to the nearest cent.
Elliptical Machines
ActivityActivity- Base UsageXActivity Rate=ActivityCost
Fabrication
Assembly
Setup
Inspecting
Production scheduling
Purchasing
Total activity cost
Number of units /
Activity cost per unit
Use the activity rate and usage information to calculate the total activity cost and activity cost per unit for treadmill product. Complete the Activity Table for treadmills. If required, round per-unit answers to the nearest cent.
Treadmills
ActivityActivity- Base UsageXActivity Rate=ActivityCost
Fabrication
Assembly
Setup
Inspecting
Production scheduling
Purchasing
Total activity cost
Number of units /
Activity cost per unit