eBook 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 Fabrication Assembly Setup Inspecting Production scheduling Purchasing Print Item ( $50 per setup $28 per inspection $14 per production order $11 per purchase order The activity-base usage quantities and units produced for each product were as follows: Activity Base Elliptical Machines Machine hours Direct labor hours Setups Inspections Production orders Purchase orders Units produced 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. Total Activity Cost Activity Cost Per Unit Elliptical Machines Treadmill Activity Rate $24 per machine hour $13 per direct labor hour. 1,687 419 53 732 78 198 286 Treadmill 995 163 16 439 16 121 192 Check My Work 4 more Check My Work uses remaining. All work saved. M P Email Instructor Save and Exit 39°F A Previous Next Submit Assignment for Grading 1:05 PM 3/16/2023

Product-Costing Accuracy, Consumption Ratios Plata Company produces two products: a mostly handcrafted soft leather briefcase sold under the label Maletin Elegant and a leather briefcase produced largely through automation and sold under the label Maletin Fina. The two products use two overhead activities, with the following costs Setting up equipment: $6,000 Machining 22,000 The controller has collected the expected annual prime costs for each briefcase, the machine hours, the setup hours, and the expected production. Line Item Description:        Elegant            Fina Direct Labor                        $9,000             $3,000 Direct materials                   $3,000             $3,000 Units                                    $3,000             $3,000 Machine Hours                    $500                $4,500 Setup Hours                        $100                 $100 1.  Conceptual Connection: Do you think that the direct labor costs and direct materials costs are accurately…

Telecom uses activity - based costing to allocate all manufacturing conversion costs. Telecom produces cellular telephones; each phone has $20.00 of direct materials, includes 50 parts and requires 3 hours of machine time. Additional information follows: Activity Materials handling Machining Assembling Packaging What is the cost of machining per phone? A. $6 B. $9 C. $200 O D. $175 Allocation Base Number of parts Machine hours Number of parts Number of finished units Cost Allocation Rate $3.50 per part $2.00 per machine hour $4.00 per part $3.00 per finished unit

This section has a nine-part comprehensive problem with multiple questions to address. Download the Chapter 9 Comprehensive Problem Template below to complete all parts. You will need your Bergevin and MacQueen book for reference. Redlands Inc. reported standard and actual costs for the product that it manufactures: Item Direct material price Direct materials quantity Direct labor price Direct labor quantity Factory overhead cost Machine hours per unit Number of finished products made Number of finished products sold Sales price per unit Standard $3 per lb. 2 lbs. $5 3 hours $2 per machine hour 2 machine hours 10 10 $40 Actual $2 per lb. 4 lbs. $7 2 hours 3 machine hours 12 11 $40