Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. (#18- 6) product costs using activity rates atlas

(#18- 6) Product Costs using Activity Rates Atlas Enterprises Inc. manufactures elliptical exercise machines and...

60.1K

Verified Solution

Question

Accounting

(#18- 6) 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 $24 per machine hour
Assembly $13 per direct labor hour
Setup $57 per setup
Inspecting $29 per inspection
Production scheduling $14 per production order
Purchasing $11 per purchase order

The activity-base usage quantities and units produced for each product were as follows:

Activity Base Elliptical Machines Treadmill
Machine hours 1,702 1,004
Direct labor hours 433 169
Setups 42 13
Inspections 648 389
Production orders 78 16
Purchase orders 180 110
Units produced 249 167

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
Elliptical Machines $ $
Treadmill $ $

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students