Hercules Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication and...
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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: Activity Activity Rate Fabrication $29 per machine hour Assembly $17 per direct labor hour Setup $48 per setup Inspecting $31 per inspection Production scheduling $18 per production order Purchasing $15 per purchase order The activity-base usage quantities and units produced for each product were as follows: Activity Base Elliptical Machines Treadmill Machine hours 1,848 1,090 Direct labor hours 391 152 Setups 61 19 Inspections 702 421 Production orders 65 13 Purchase orders 182 111 Units produced 316 212 Use the activity rate and usage information to determine the total activity cost and activity cost per unit for each product. If required, round the per unit answers to the nearest cent. Total Activity Cost Activity Cost Per Unit Elliptical Machines Treadmill 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: Activity Activity Rate Fabrication $29 per machine hour Assembly $17 per direct labor hour Setup $48 per setup Inspecting $31 per inspection Production scheduling $18 per production order Purchasing $15 per purchase order The activity-base usage quantities and units produced for each product were as follows: Activity Base Elliptical Machines Treadmill Machine hours 1,848 1,090 Direct labor hours 391 152 Setups 61 19 Inspections 702 421 Production orders 65 13 Purchase orders 182 111 Units produced 316 212 Use the activity rate and usage information to determine the total activity cost and activity cost per unit for each product. If required, round the per unit answers to the nearest cent. Total Activity Cost Activity Cost Per Unit Elliptical Machines Treadmill
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Related Book For
Financial & Managerial Accounting
ISBN: 978-1337902663
15th edition
Authors: Carl Warren, Jefferson P. Jones, William B. Tayler
Posted Date:
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