Calculations of Total Activity Cost Elliptical Machine
and Treadmill:-
| Activity Base |
Rate |
Elliptical Machine |
Treadmill |
| Machine Hours |
$20 per machine hours |
(1,747×$20)=$34,940 |
(1,031×$20=$20,620 |
| Direct Labor hours |
$10 per direct labor hours |
(385×$10)=$3,850 |
(150×$10)=$1,500 |
| Set ups |
$55 per setup |
(56×$55)=$3,080 |
(17×$55)=$935 |
| Inspections |
$24 per inspection |
(683×$24)=$16,392 |
(410×$24)=$9,840 |
| Production Orders |
$11 per Production Order |
(72×$11)=$792 |
(14×$11)=$154 |
| Purchase Orders |
$8 per Purchase order |
(189×$8)=$1,512 |
(115×$8)=$920 |
|
|
|
|
| Total Activity Cost |
|
$60,566 |
$33,969 |
Computation of Activity Cost per Unit for Elliptical
Machine:-
Elliptical Machine Activity Cost per unit=(Total
Activity Cost/No. Of units produced)
=($60,566/313)
=$193.50 per Unit
Computation of Activity Cost per Unit for
Treadmill:-
Treadmill Activity cost per Unit=(Total Activity
Cost/No. Of units produced)
=($30,969/210)
=$147.47 per Unit
