Please give me step by step instruction ch 26 pro 8 Product Costs using Activity Rates Cardio Care Inc. manufactures stationary bicycles and treadmills. 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 Activity Rate Fabrication $30 per machine hour Assembly $10 per direct labor hour Setup $47 per setup Inspecting $32 per inspection Production scheduling $11 per production order Purchasing $8 per purchase order The activity-base usage quantities and units produced for each product were as follows: Activity Base Stationary Bicycle Treadmill Machine hours 1,729 1,020 Direct labor hours 380 148 Setups 44 14 Inspections 669 401 Production orders 75 15 Purchase orders 172 105 Units produced 298 200 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. Total Activity Cost Activity Cost Per Unit Stationary bicycle $ $ Treadmill $ $
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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ch 26 pro 8
Product Costs using Activity Rates
Cardio Care Inc. manufactures stationary bicycles and treadmills. 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 | Activity Rate | |
| Fabrication | $30 | per machine hour |
| Assembly | $10 | per direct labor hour |
| Setup | $47 | per setup |
| Inspecting | $32 | per inspection |
| Production scheduling | $11 | per production order |
| Purchasing | $8 | per purchase order |
The activity-base usage quantities and units produced for each product were as follows:
| Activity Base | Stationary Bicycle | Treadmill | ||
| Machine hours | 1,729 | 1,020 | ||
| Direct labor hours | 380 | 148 | ||
| Setups | 44 | 14 | ||
| Inspections | 669 | 401 | ||
| Production orders | 75 | 15 | ||
| Purchase orders | 172 | 105 | ||
| Units produced | 298 | 200 |
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.
| Total Activity Cost | Activity Cost Per Unit | |
| Stationary bicycle | $ | $ |
| Treadmill | $ | $ |
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