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.

Transcribed Image Text:

Activity Rate $30 per machine hour $35 per direct labor hour $90 per setup $20 per inspection $19 per production order $5 per purchase order Activity Fabrication Assembly Setup Inspecting Production scheduling Purchasing Activity Base Elliptical Machines Treadmills Machine hours Direct labor hours Setups Inspections Production orders 400 223 600 190 30 25 15 40 318 30 85 Purchase orders Units produced 500 320