Question

Cardio Care Inc. manufactures stationary bicycles 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 ..............$ 12 per direct labor hour
Setup ...............$ 60 per setup
Inspecting .............$ 30 per inspection
Production scheduling .........$ 13 per production order
Purchasing .............$ 11 per purchase order
The activity-base usage quantities and units produced for each product were as follows:


Use the activity rate and usage information to calculate the total activity cost and activity cost per unit for eachproduct.


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  • CreatedJune 27, 2014
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