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
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
Financial & Managerial Accounting
14th Edition
ISBN:9781337119207
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter18: Activity-Based Costing
Section: Chapter Questions
Problem 3ADM: Production run size and activity improvement Littlejohn, Inc. manufactures machined parts for the...
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