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 $32 per machine hour Assembly $14 per direct labor hour Setup $54 per setup Inspecting $22 per inspection Production scheduling $15 per production order Purchasing $12 per purchase order The activity-base usage quantities and units produced for each product were as follows: Activity Base Elliptical Machines Treadmill Machine hours 1,723 1,017 Direct labor hours 408 159 Setups 42 13 Inspections 614 368 Production orders 77 15 Purchase orders 171 104 Units produced 315 211 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

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 $32 per machine hour Assembly $14 per direct labor hour Setup $54 per setup Inspecting $22 per inspection Production scheduling $15 per production order Purchasing $12 per purchase order The activity-base usage quantities and units produced for each product were as follows: Activity Base Elliptical Machines Treadmill Machine hours 1,723 1,017 Direct labor hours 408 159 Setups 42 13 Inspections 614 368 Production orders 77 15 Purchase orders 171 104 Units produced 315 211 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

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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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: The activity-base usage quantities and units produced for each product were as follows: Use the activity rate and usage information to determine the total activity cost and activity cost per unit for each product.
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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 $31 per machine hour Assembly $17 per direct labor hour Setup $58 per setup Inspecting $29 per inspection Production scheduling $18 per production order Purchasing $15 per purchase order The activity-base usage quantities and units produced for each product were as follows: Activity Base Elliptical Machines Treadmill Machine hours 1,741 1,027 Direct labor hours 440 172 Setups 54 17 Inspections 719 431 Production orders 69 14 Purchase orders 200 122 Units produced 278 186 Use the activity rate and usage information to determine the total activity cost and activity…
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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 $33 per machine hour Assembly $35 per direct labor hour Setup $87 per setup Inspecting $24 per inspection Production scheduling $23 per production order Purchasing $14 per purchase order The activity-base usage quantities and units produced for each product were as follows: Activity Base Elliptical Machines Treadmill Machine hours 750 500 Direct labor hours 238 288 Setups 31 31 Inspections 25 32 Production orders 60 50 Purchase orders 328 100 Units produced 540 420 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform…