Question

Cardio Care Inc. 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	$23 per machine hour (mh)
Assembly	$14 per direct labor hour (dlh)
Setup	$40 per setup
Inspecting	$21 per inspection
Production scheduling	$16 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	2,060			1,050
Direct labor hours	470			170
Setups	40			20
Inspections	670			360
Production orders	40			50
Purchase orders	180			80
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	$				$

Answer 1

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	$				$

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	$47380				$24150
Assembly	6580				2380
Setup	1600				800
Inspecting	14070				7560
Production scheduling	640				800
Purchasing	1440				640
Total	$71710				$36330
Number of units	1000				1000
Activity cost per unit	$71.71				$36.33