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Hercules Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication...

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Accounting

Hercules 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 follow

Activity Activity Rate
Fabrication $21 per machine hour
Assembly $13 per direct labor hour
Setup $48 per setup
Inspecting $20 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 1,978 1167
Direct labor hours 402 157
Setups 59 18
Inspections 663 398
Production orders 71 14
Purchase orders 188 115
Units produced 288 193

Use the activity rate and usage information to determine 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 $ $

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