Question

Atlas Enterprises 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	$33 per machine hour
Assembly	$18 per direct labor hour
Setup	$56 per setup
Inspecting	$20 per inspection
Production scheduling	$12 per production order
Purchasing	$8 per purchase order

The activity-base usage quantities and units produced for each product were as follows:

	Elliptical
Activity Base	Machines	Treadmills
Machine hours	915	431
Direct labor hours	180	106
Setups	29	10
Inspections	163	183
Production orders	19	9
Purchase orders	94	50
Units produced	353	163

Required:

Use the activity rate and usage information to calculate 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
Activity	Activity-
	Base		Activity		Activity
	Usage	X	Rate	=	Cost
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
Activity	Activity-
	Base		Activity		Activity
	Usage	X	Rate	=	Cost
Fabrication
Assembly
Setup
Inspecting
Production scheduling
Purchasing
Total activity cost
÷ Number of units				÷
Activity cost per unit

Answer 1

	Elliptical Machines
Activity	Activity-
	Base		Activity		Activity
	Usage	X	Rate	=	Cost
Fabrication	915		33		30,195
Assembly	180		18		3,240
Setup	29		56		1,624
Inspecting	163		20		3,260
Production scheduling	19		12		228
Purchasing	94		8		752
Total activity cost					39,299
÷ Number of units				÷	353
Activity cost per unit					111.33

	Treadmills
Activity	Activity-
	Base		Activity		Activity
	Usage	X	Rate	=	Cost
Fabrication	431		33		14,223
Assembly	106		18		1,908
Setup	10		56		560
Inspecting	183		20		3,660
Production scheduling	9		12		108
Purchasing	50		8		400
Total activity cost					20,859
÷ Number of units				÷	163
Activity cost per unit					127.97