CardioTrainer Equipment Company manufactures stationary bicycles and treadmills. The products are produced in the 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.......................................................... $22 per machine hour (mh)

Assembly............................................................ $12 per direct labor hour (dlh)

Setup.................................................................. $40 per setup

Inspecting............................................................ $18 per inspection

Production scheduling.............................................. $8 per production order

Purchasing............................................................ $5 per purchase order

The activity-base usage quantities and units produced for each product were as follows:

Stationary Bicycle Treadmill

Machine hours 1,680 1,070

Direct labor hours 243 131

Setups 45 20

Inspections 158 94

Production orders 60 32

Purchase orders 240 98

Units produced 500 350

Use the activity rate and usage information to compute the total activity costs and the activity costs per unit for each product.