Atlas Enterprises Inc. manufactures elli Learning Objective 4 The products are produced in its Fabrication and Assembly production departments. In addition to production activities, several other activities an required to produce the two products. These activities and their associated activity rates are as follows: Activity Fabrication Assembly Setup Inspecting Production scheduling Purchasing Activity Rate $31 per machine hour $8 per direct labor hour $51 per setup $28 per inspection $9 per production order $6 per purchase order The activity-base usage quantities and units produced for each product were as follows: Elliptical Machines Treadmill 1,023 149 15 Inspections 446 Production orders 15 Purchase orders 109 Units produced 167 Use the activity rate and usage information to calculate the total activity cost and activity cost per unit for each product. If required, round the per unit answers to the nearest cent. Activity Base Machine hours Direct labor hours Setups 1,734 382 49 743 74 179 249

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Atlas Enterprises Inc. manufactures elli Learning Objective 4
s. 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
Fabrication
Assembly
Setup
Inspecting
Production scheduling.
Purchasing
Activity Rate
$31 per machine hour
$8 per direct labor hour
$51 per setup
$28 per inspection
$9 per production order
$6 per purchase order
The activity-base usage quantities and units produced for each product were as follows:
Activity Base
Elliptical Machines
Treadmill
Machine hours
1,734
1,023
Direct labor hours
382
149
Setups
49
743
15
74
Inspections.
Production orders
Purchase orders
179
Units produced
249
Use the activity rate and usage information to calculate the total activity cost and activity cost per unit for each product. If required, round the per unit answers to the nearest cent.
446
15
109
167
Transcribed Image Text:Atlas Enterprises Inc. manufactures elli Learning Objective 4 s. 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 Fabrication Assembly Setup Inspecting Production scheduling. Purchasing Activity Rate $31 per machine hour $8 per direct labor hour $51 per setup $28 per inspection $9 per production order $6 per purchase order The activity-base usage quantities and units produced for each product were as follows: Activity Base Elliptical Machines Treadmill Machine hours 1,734 1,023 Direct labor hours 382 149 Setups 49 743 15 74 Inspections. Production orders Purchase orders 179 Units produced 249 Use the activity rate and usage information to calculate the total activity cost and activity cost per unit for each product. If required, round the per unit answers to the nearest cent. 446 15 109 167
Elliptical Machines
Treadmill
Total Activity Cost
S
Activity Cost Per Unit
LA
LA
Transcribed Image Text:Elliptical Machines Treadmill Total Activity Cost S Activity Cost Per Unit LA LA
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