eBook

Activity

Fabrication

Assembly

Setup

Inspecting

Production scheduling

Purchasing

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

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

Activity Base

$\backslash$table$[[$Machine hours,$600,400],[$Direct labor hours,$190,223],[$Setups$,30,30],[$Inspections$,15,25],[$Production orders,$40,30],[$Purchase orders,$318,85],[$Units produced,$500,320]]$

Use the activity rate and usage information to determine the total activity cost and activity cost per unit for each

Total Activity Cost

Activity Cost Per Unit

Elliptical machines

$

Treadmill

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