Question

Activity-Based Costing HealthTec Equipment Company manufactures stationary bicycles and treadmills. The products are produced in the...

Activity-Based Costing HealthTec Equipment Company manufactures stationary bicycles and treadmills. The products are produced in the 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 (mh) Assembly $12 per direct labor hour (dlh) Setup $50 per setup Inspecting $30 per inspection Production scheduling $14 per production order Purchasing $8 per purchase order The activity-base usage quantities and units produced for each product were as follows: Stationary Bicycle Treadmill Machine hours 1,920 1,020 Direct labor hours 480 210 Setups 40 20 Inspections 700 360 Production orders 80 50 Purchase orders 150 110 Units produced 1,000 1,000 Use the activity rate and usage information to compute the total activity costs and the activity costs per unit for each product. If required, round your answers to two decimal places. Activity Stationary Bicycle Activity Cost Treadmill Activity Cost Fabrication $ $ Assembly Setup Inspecting Production scheduling Purchasing Total $ $ Number of units Activity cost per unit $ $

Homework Answers

Answer #1
Stationary bicycles Activity rate Activity Amount
Fabrication 33 1920 63360
Assembly 12 480 5760
setup 50 40 2000
Inspecting 30 700 21000
Production scheduiling 14 80 1120
Purchasing 8 150 1200
Total activity cost 94440
Units produced 1000
Per unit cost 94.44
Treadmill Activity rate Activity Amount
Fabrication 33 1020 33660
Assembly 12 210 2520
setup 50 20 1000
Inspecting 30 360 10800
Production scheduiling 14 50 700
Purchasing 8 110 880
Total activity cost 49560
Units produced 1000
Per unit cost 49.56
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Atlas Enterprises Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication...
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...
Atlas Enterprises Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication...
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...
Atlas Enterprises Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication...
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 $30 per machine hour Assembly $15 per direct labor hour Setup $54 per setup Inspecting $32 per inspection Production scheduling $16 per production order Purchasing $13 per purchase order The activity-base...
Atlas Enterprises Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication...
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 $31 per machine hour Assembly $17 per direct labor hour Setup $46 per setup Inspecting $32 per inspection Production scheduling $18 per production order Purchasing $15 per purchase order The activity-base...
Atlas Enterprises Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication...
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 $27 per machine hour Assembly $13 per direct labor hour Setup $49 per setup Inspecting $26 per inspection Production scheduling $14 per production order Purchasing $11 per purchase order The activity-base...
Product Costs using Activity Rates Hercules Inc. manufactures elliptical exercise machines and treadmills. The products are...
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: Activity Activity Rate Fabrication $24 per machine hour Assembly $17 per direct labor hour Setup $51 per setup Inspecting $23 per inspection Production scheduling $18 per production order Purchasing $15 per...
Product Costs using Activity Rates Hercules Inc. manufactures elliptical exercise machines and treadmills. The products are...
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: Activity Activity Rate Fabrication $26 per machine hour Assembly $12 per direct labor hour Setup $55 per setup Inspecting $30 per inspection Production scheduling $13 per production order Purchasing $10 per...
Product Costs using Activity Rates Atlas Enterprises Inc. manufactures elliptical exercise machines and treadmills. The products...
Product Costs using Activity Rates 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 $30 per machine hour Assembly $9 per direct labor hour Setup $56 per setup Inspecting $26 per inspection Production scheduling $10 per production order Purchasing $7...
Product costs using activity rates Hercules Inc. manufactures elliptical exercise machines and treadmills. The products are...
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: Activity Activity Rate Fabrication $25 per machine hour Assembly $32 per direct labor hour Setup $87 per setup Inspecting $15 per inspection Production scheduling $14 per production order Purchasing $5 per...
Product costs using activity rates Hercules Inc. manufactures elliptical exercise machines and treadmills. The products are...
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: Activity Activity Rate Fabrication $35 per machine hour Assembly $33 per direct labor hour Setup $94 per setup Inspecting $19 per inspection Production scheduling $18 per production order Purchasing $9 per...