Question

Calculator Product Costs using Activity Rates 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: Activity Activity Rate Fabrication $20 per machine hour Assembly $11 per direct labor hour Setup $55 per setup Inspecting $21 per inspection Production scheduling $12 per production order Purchasing $9 per purchase order The activity-base usage quantities and units produced for each product were as follows: Activity Base Elliptical Machines Treadmill 1,671 985 150 Machine hours Direct labor hours Setups Inspections Production orders Purchase orders Units produced Use the activitate and ene information to calculate the tal art a c h durtainen mind the nit answers to the neared 6:36 PM 2/21/2020

Answer 1

Activity rate - Activity cost Assembly set up Elliptical machines i Activity I Activity x Base Wage I fabrication 1,671 X 384 x 50 x Inspecting 622 x 1 Production 72 x scheduling Purchasing 202 x Total Activity cost -a Monog units. -b Activity cost per unit = (Yb). $20 11 $55 $21 $ 12 = = = = = $33,420 4,224 2,750 13,062 864 8 9 856, 138 = 249 = 18 225.45 - Activity cost Thread milli Activity Activity Activity ro usage rate fabrication 986 x 820 Assembly - 150 Y $11 set up 16 y $55 Inspecting 373 x 21 Production 14 X $ 12 Scheduling Purchasing 123 X $9 notal activity cost -a Number of units - b. Activity cost per unit (a/b) = = - = $19,720 1,650 980 7,833. 1 68 - 1,104 = $ 31,358 167 - $197.27

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