Endurance Enterprises Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication and

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Endurance Enterprises 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...............................................$30 per machine hour

Assembly..................................................$15 per direct labor hour

Setup........................................................$50 per setup

Inspecting.................................................$25 per inspection

Production scheduling............................$15 per production order

Purchasing................................................$10 per purchase order

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

Endurance Enterprises Inc. manufactures elliptical exercise machines and treadmills. The

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

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Financial and Managerial Accounting

ISBN: 978-1285866307

13th edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

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