A company manufactures elliptical machines and treadmills. Activity cost pools and activity rates follow. Activity Assembly Quality control Activity Rate $ 15 per direct labor hour $10 per inspection Activity usage for treadmills follows. Compute the overhead cost per unit for treadmills. The company made 100 treadmills. Activity Usage Treadmills 390 90 Cost Driver Direct labor hours Inspections
A company manufactures elliptical machines and treadmills. Activity cost pools and activity rates follow. Activity Assembly Quality control Activity Rate $ 15 per direct labor hour $10 per inspection Activity usage for treadmills follows. Compute the overhead cost per unit for treadmills. The company made 100 treadmills. Activity Usage Treadmills 390 90 Cost Driver Direct labor hours Inspections
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:A company manufactures elliptical machines and treadmills. Activity cost pools and activity rates follow.
Activity
Activity Rate
Assembly
Quality control
$15 per direct labor hour
$10 per inspection
Activity usage for treadmills follows. Compute the overhead cost per unit for treadmills. The company made 100 treadmills.
Activity Usage
Treadmills
Cost Driver
Direct labor hours.
Inspections
390
90
Note: Round Overhead per unit to two decimal places..
Overhead cost per unit-Treadmills
Activity Cost Pool
Assembly
Quality control
Total
Units produced
Overhead per unit
Activity Usage
Activity Rate
Allocated Cost
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