Body-Solid Inc. manufactures elliptical exercise machines and treadmills. The products are prouced 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 $32 per machine hour $17 per direct labor hour $52 per setup $23 per inspection $18 per production order $15 per purchase order The activity-base usage quantities and units produced for each product were as follows: Elliptical Activity Base Machines Machine hours 1,771 Direct labor hours 422 Setups 45 Inspections 666 Production orders 77 Purchase orders 191 Units produced 315 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. Elliptical machines Treadmill Treadmill 1,045 165 14 400 15 117 211 Total Activity Cost Activity Cost Per Unit

Body-Solid Inc. manufactures elliptical exercise machines and treadmills. The products are prouced 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 $32 per machine hour $17 per direct labor hour $52 per setup $23 per inspection $18 per production order $15 per purchase order The activity-base usage quantities and units produced for each product were as follows: Elliptical Activity Base Machines Machine hours 1,771 Direct labor hours 422 Setups 45 Inspections 666 Production orders 77 Purchase orders 191 Units produced 315 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. Elliptical machines Treadmill Treadmill 1,045 165 14 400 15 117 211 Total Activity Cost Activity Cost Per Unit

Name: Body-Solid Inc. manufactures elliptical exercise machines and treadmi
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Description: Body-Solid Inc. manufactures elliptical exercise machines and treadmills. The products are prouced in its Fabrication and Assembly production departments. In addition toproduction activities, several other activities are required to produce the two

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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Product costs using activity rates Body-Solid Inc. manufactures elliptical exercise machines and treadmills. The products are prouced 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 $22 per machine hour $13 per direct labor hour $46 per setup $22 per inspection $14 per production order $11 per purchase order The activity-base usage quantities and units produced for each product were as follows: Activity Base Machine hours Direct labor hours Setups Inspections Production orders Purchase orders Elliptical Machines 1,778 Elliptical machines Treadmill 431 $ 53 747 72 Treadmill 1,049 168 16 201 Units produced 303 Use the activity rate and usage information to determine the total activity cost and activity cost per unit…