Question: Product costs using activity rates Hercules Inc, manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication and Assembly production departments. In
Product costs using activity rates 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 Rate Activity Fabrication $32 per machine hour per direct labor hour Assembly Setup Inspecting Production scheduling Purchasing $90 per setup per inspection per production order per purchase order The activity-base usage quantities and units produced for each product were as follows: Activity Base Elliptical Machines Treadmill Machine hours Direct labor hours Setups Inspections Production orders Purchase orders Units produced This information has been collected in the Microsoft Excel Online file Open the spreadsheet equired analysis, and input your answers in the question below
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