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 $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: Activity Base Elliptical Machines Treadmill 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 Use the activity rate and usage information to calculate the total activity cost and activity cost per unit for each product. If required round your answers to nearest cent. Total Activity Cost Activity Cost Per Unit Elliptical machines $ $ Treadmill

Answer 1