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 | $28 per machine hour |
| Assembly | $20 per direct labor hour |
| Setup | $75 per setup |
| Inspecting | $30 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 | 700 | 600 |
| Direct labor hours | 182 | 64 |
| Setups | 20 | 15 |
| Inspections | 10 | 16 |
| Production orders | 30 | 20 |
| Purchase orders | 56 | 75 |
| Units produced | 400 | 250 |
| 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 | ||||
| Activity | Usage | Rate | Cost | ||
| Fabrication | 700 | 28 | 19600 | ||
| Assembly | 182 | 20 | 3640 | ||
| Setup | 20 | 75 | 1500 | ||
| Inspecting | 10 | 30 | 300 | ||
| Product Schedulling | 30 | 12 | 360 | ||
| Purchasing | 56 | 8 | 448 | ||
| Total Activity cost | 25848 | ||||
| Divide: Nnumber of Units | 400 | ||||
| Activity cost per unit | 64.62 | ||||
| Treadmills | |||||
| Activity | Activity | ||||
| Activity | Usage | Rate | Cost | ||
| Fabrication | 600 | 28 | 16800 | ||
| Assembly | 64 | 20 | 1280 | ||
| Setup | 15 | 75 | 1125 | ||
| Inspecting | 16 | 30 | 480 | ||
| Product Schedulling | 20 | 12 | 240 | ||
| Purchasing | 75 | 8 | 600 | ||
| Total Activity cost | 20525 | ||||
| Divide: Nnumber of Units | 250 | ||||
| Activity cost per unit | 82.1 | ||||
Get Answers For Free
Most questions answered within 1 hours.