eBook Print Item Activity-Based Costing HealthTec Equipment Company manufactures stationary bicycles and treadmills. The products are produced in the Fabrication and Assembly production departments....






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    Activity-Based Costing


    HealthTec Equipment Company 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$32 per machine hour (mh)
    Assembly$16 per direct labor hour (dlh)
    Setup$50 per setup
    Inspecting$29 per inspection
    Production scheduling$19 per production order
    Purchasing$6 per purchase order

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



































































    Stationary Bicycle

    Treadmill
    Machine hours1,870950
    Direct labor hours460170
    Setups3010
    Inspections660340
    Production orders4050
    Purchase orders160140
    Units produced1,0001,000

    Use the activity rate and usage information to compute the total activity costs and the activity costs per unit for each product. If required, round your answers to two decimal places.





































































































    Activity

    Stationary Bicycle
    Activity Cost


    Treadmill
    Activity Cost

    Fabrication$fill in the blank 1$fill in the blank 2
    Assemblyfill in the blank 3fill in the blank 4
    Setupfill in the blank 5fill in the blank 6
    Inspectingfill in the blank 7fill in the blank 8
    Production schedulingfill in the blank 9fill in the blank 10
    Purchasingfill in the blank 11fill in the blank 12
    Total$fill in the blank 13$fill in the blank 14
    Number of unitsfill in the blank 15fill in the blank 16
    Activity cost per unit$fill in the blank 17$fill in the blank 18







Jun 10, 2022
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