Business, 17.06.2020 17:57 nschavez123

Cardio Care Inc. manufactures stationary bicycles and treadmills. The products are produced in the 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 $28 per machine hour
Assembly $10 per direct labor hour
Setup $57 per setup
Inspecting $30 per inspection
Production scheduling $11 per production order
Purchasing $8 per purchase order
The activity-base usage quantities and units produced for each product were as follows:
Activity Base Stationary Bicycle Treadmill
Machine hours 1,779 1,050
Direct labor hours 462 180
Setups 43 13
Inspections 712 427
Production orders 68 14
Purchase orders 214 131
Units produced 280 188
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
Stationary bicycle $ $
Treadmill $ $

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Cardio Care Inc. manufactures stationary bicycles and treadmills. The products are produced in the F...

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