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 activiti 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 Elliptical Machines 1,778 431 53 Treadmill 1,049 168 16

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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 for each product. If required, round the per unit answers to the nearest cent.
Activity Cost Per Unit
Total Activity Cost
448
14
123
203
Transcribed Image Text: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 for each product. If required, round the per unit answers to the nearest cent. Activity Cost Per Unit Total Activity Cost 448 14 123 203
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Follow-up Question
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.
Total Activity Cost
Activity Cost Per Unit
66,810 ✓
37,403 X
220.50 X
184.25 ✓
Elliptical machines
Treadmill
$
Transcribed Image Text: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. Total Activity Cost Activity Cost Per Unit 66,810 ✓ 37,403 X 220.50 X 184.25 ✓ Elliptical machines Treadmill $
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