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Activity-Based Costing HealthTec Equipment Company manufactures stationary bicycles and treadmills. The products are produced in the 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 $30 per machine hour (mh) Assembly $15 per direct labor hour (dlh) Setup $50 per setup Inspecting $27 per inspection Production scheduling $18 per production order Purchasing $6 per purchase order The activity-base usage quantities and units produced for each product were as follows: Stationary Bicycle Treadmill Machine hours 2,230 890 Direct labor hours 400 170 Setups 60 20 Inspections 690 320 Production orders 60 50 Purchase orders 150 130 Units produced 1,000 1,000 Use the activity rate and usage information to compute the total activity costs and the activity costs per unit for each product. If required, round your answers to two decimal places.

Activity-Based Costing HealthTec Equipment Company manufactures stationary bicycles and treadmills. The products are produced in the 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 $30 per machine hour (mh) Assembly $15 per direct labor hour (dlh) Setup $50 per setup Inspecting $27 per inspection Production scheduling $18 per production order Purchasing $6 per purchase order The activity-base usage quantities and units produced for each product were as follows: Stationary Bicycle Treadmill Machine hours 2,230 890 Direct labor hours 400 170 Setups 60 20 Inspections 690 320 Production orders 60 50 Purchase orders 150 130 Units produced 1,000 1,000 Use the activity rate and usage information to compute the total activity costs and the activity costs per unit for each product. If required, round your answers to two decimal places.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Activity-Based Costing HealthTec Equipment Company manufactures stationary bicycles and treadmills. The products are produced in the 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 $30 per machine hour (mh) Assembly $15 per direct labor hour (dlh) Setup $50 per setup Inspecting $27 per inspection Production scheduling $18 per production order Purchasing $6 per purchase order The activity-base usage quantities and units produced for each product were as follows: Stationary Bicycle Treadmill Machine hours 2,230 890 Direct labor hours 400 170 Setups 60 20 Inspections 690 320 Production orders 60 50 Purchase orders 150 130 Units produced 1,000 1,000 Use the activity rate and usage information to compute the total activity costs and the activity costs per unit for each product. If required, round your answers to two decimal places.
Transcribed Image Text:Activity-Based Costing HealthTec Equipment Company manufactures stationary bicycles and treadmills. The products are produced in the 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 $30 per machine hour (mh) Assembly $15 per direct labor hour (dlh) Setup $50 per setup Inspecting $27 per inspection Production scheduling $18 per production order Purchasing $6 per purchase order The activity-base usage quantities and units produced for each product were as follows: Stationary Bicycle Treadmill Machine hours 2,230 890 Direct labor hours 400 170 Setups 60 20 Inspections 690 320 Production orders 60 50 Purchase orders 150 130 Units produced 1,000 1,000 Use the activity rate and usage information to compute the total activity costs and the activity costs per unit for each product. If required, round your answers to two decimal places.
Use the activity rate and usage information to compute the total activity costs and the activity costs per unit for each product. If required, round your answers to two decimal places. Stationary Bicycle Treadmill Activity Activity Cost Activity Cost Fabrication Assembly Setup Inspecting Production scheduling Purchasing Total Number of units Activity cost per unit
Transcribed Image Text:Use the activity rate and usage information to compute the total activity costs and the activity costs per unit for each product. If required, round your answers to two decimal places. Stationary Bicycle Treadmill Activity Activity Cost Activity Cost Fabrication Assembly Setup Inspecting Production scheduling Purchasing Total Number of units Activity cost per unit
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