Atlas Enterprises Inc. manufactures elliptical exercise machinesand treadmills. The products are produced in its...

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Accounting

Atlas Enterprises Inc. manufactures elliptical exercise machinesand treadmills. The products are produced in its Fabrication andAssembly production departments. In addition to productionactivities, several other activities are required to produce thetwo products. These activities and their associated activity ratesare as follows:
Activity Activity Rate
Fabrication $27 per machine hour
Assembly $9 per direct labor hour
Setup $51 per setup
Inspecting $31 per inspection
Production scheduling $10 per production order
Purchasing $7 per purchase order
The activity-base usage quantities and units produced for eachproduct were as follows:
Activity Base Elliptical Machines Treadmill
Machine hours 1,924 1,135
Direct labor hours 447 174
Setups 59 18
Inspections 676 406
Production orders 77 15
Purchase orders 173 106
Units produced 248 166
Use the activity rate and usage information to calculate thetotal activity cost and activity cost per unit for each product. Ifrequired, round the per unit answers to the nearest cent.
Total Activity Cost Activity Cost Per Unit
Elliptical Machines $ $
Treadmill $ $

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All working forms part of the answer
Workings

			Elliptical Machines		Treadmill
Activity	Activity Rate		No. of cost drivers	Activity Cost	No. of cost drivers	Activity Cost
Fabrication	$ 27.00	per machine hour	1,924	$ 51,948.00	1,135	$ 30,645.00
Assembly	$ 9.00	per direct labor hour	447	$ 4,023.00	174	$ 1,566.00
Setup	$ 51.00	per setup	59	$ 3,009.00	18	$ 918.00
Inspecting	$ 31.00	per inspection	676	$ 20,956.00	406	$ 12,586.00
Production scheduling	$ 10.00	per production order	77	$ 770.00	15	$ 150.00
Purchasing	$ 7.00	per purchase order	173	$ 1,211.00	106	$ 742.00
			TOTAL	$ 81,917.00	TOTAL	$ 46,607.00
			Units	248	Units	166
			Activity Cost per unit	$ 330.31		$ 280.77

Answers

	Total Activity Cost	Activity Cost Per Unit
Elliptical Machines	$ 81,917.00	$ 330.31
Treadmill	$ 46,607.00	$ 280.77

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In: AccountingAtlas Enterprises Inc. manufactures elliptical exercise machinesand treadmills. The products are produced in its Fabrication...Atlas Enterprises Inc. manufactures elliptical exercise machinesand treadmills. The products are produced in its Fabrication andAssembly production departments. In addition to productionactivities, several other activities are required to produce thetwo products. These activities and their associated activity ratesare as follows:ActivityActivity RateFabrication$27per machine hourAssembly$9per direct labor hourSetup$51per setupInspecting$31per inspectionProduction scheduling$10per production orderPurchasing$7per purchase orderThe activity-base usage quantities and units produced for eachproduct were as follows:Activity BaseElliptical MachinesTreadmillMachine hours1,9241,135Direct labor hours447174Setups5918Inspections676406Production orders7715Purchase orders173106Units produced248166Use the activity rate and usage information to calculate thetotal activity cost and activity cost per unit for each product. Ifrequired, round the per unit answers to the nearest cent.Total Activity CostActivity Cost Per UnitElliptical Machines$$Treadmill$$

Activity Base	Elliptical Machines	Treadmill
Machine hours	1,924	1,135
Direct labor hours	447	174
Setups	59	18
Inspections	676	406
Production orders	77	15
Purchase orders	173	106
Units produced	248	166