Atlas Enterprises Inc. manufactures elliptical exercise machines and treadmills.
ID: 2394587 • Letter: A
Question
Atlas Enterprises Inc. manufactures elliptical exercise machines 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:
The activity-base usage quantities and units produced for each product were as follows:
Use the activity rate and usage information to calculate the total activity cost and activity cost per unit for each product. Complete the Activity Tables for elliptical machines and treadmills. If required, round per-unit answers to the nearest cent.
Use the activity rate and usage information to calculate the total activity cost and activity cost per unit for elliptical machines product. Complete the Activity Table for elliptical machines. If required, round per-unit answers to the nearest cent.
Activity cost per unit
Use the activity rate and usage information to calculate the total activity cost and activity cost per unit for treadmill product. Complete the Activity Table for treadmills. If required, round per-unit answers to the nearest cent.
Activity Activity Rate Fabrication $28 per machine hour Assembly $20 per direct labor hour Setup $75 per setup Inspecting $30 per inspection Production scheduling $12 per production order Purchasing $8 per purchase orderExplanation / Answer
Elliptical machines Activity Activity Activity Usage Rate Cost Fabrication 700 28 19600 Assembly 182 20 3640 Setup 20 75 1500 Inspecting 10 30 300 Product Schedulling 30 12 360 Purchasing 56 8 448 Total Activity cost 25848 Divide: Nnumber of Units 400 Activity cost per unit 64.62 Treadmills Activity Activity Activity Usage Rate Cost Fabrication 600 28 16800 Assembly 64 20 1280 Setup 15 75 1125 Inspecting 16 30 480 Product Schedulling 20 12 240 Purchasing 75 8 600 Total Activity cost 20525 Divide: Nnumber of Units 250 Activity cost per unit 82.1
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