Body-Solid Inc. manufactures elliptical exercise machines and treadmills. The products are prouced 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 Fabrication Assembly Setup Inspecting Production scheduling Purchasing Activity Rate $32 per machine hour $17 per direct labor hour $52 per setup $23 per inspection $18 per production order $15 per purchase order The activity-base usage quantities and units produced for each product were as follows: Elliptical Activity Base Machines Machine hours 1,771 Direct labor hours 422 Setups 45 Inspections 666 Production orders 77 Purchase orders 191 Units produced 315 Use the activity rate and usage information to determine the total activity cost and activity cost per unit for each product. If required, round the per unit answers to the nearest cent. Elliptical machines Treadmill Treadmill 1,045 165 14 400 15 117 211 Total Activity Cost Activity Cost Per Unit

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 10E: Hercules Inc. manufactures elliptical exercise machines and treadmills. The products are produced in...
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Body-Solid Inc. manufactures elliptical exercise machines and treadmills. The products are prouced 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
Fabrication
Assembly
Setup
Inspecting
Production scheduling
Purchasing
Activity Rate
$32 per machine hour
$17 per direct labor hour
$52 per setup
$23 per inspection
$18 per production order
$15 per purchase order
The activity-base usage quantities and units produced for each product were as follows:
Elliptical
Machines
1,771
422
45
Inspections
666
Production orders
77
Purchase orders
191
Units produced
315
Use the activity rate and usage information to determine the total activity cost and activity cost per unit for each product. If required, round the per unit answers to the
nearest cent.
Activity Base
Machine hours
Direct labor hours
Setups
Elliptical machines
Treadmill
Treadmill
1,045
165
14
400
15
117
211
Total Activity Cost
Activity Cost Per Unit
Transcribed Image Text:Body-Solid Inc. manufactures elliptical exercise machines and treadmills. The products are prouced 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 Fabrication Assembly Setup Inspecting Production scheduling Purchasing Activity Rate $32 per machine hour $17 per direct labor hour $52 per setup $23 per inspection $18 per production order $15 per purchase order The activity-base usage quantities and units produced for each product were as follows: Elliptical Machines 1,771 422 45 Inspections 666 Production orders 77 Purchase orders 191 Units produced 315 Use the activity rate and usage information to determine the total activity cost and activity cost per unit for each product. If required, round the per unit answers to the nearest cent. Activity Base Machine hours Direct labor hours Setups Elliptical machines Treadmill Treadmill 1,045 165 14 400 15 117 211 Total Activity Cost Activity Cost Per Unit
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