CardioTrainer Equipment Company manufactures

stationary bicycles and treadmills The products #6960

CardioTrainer 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
RateFabrication.......................................................... $22 per machine hour
(mh)Assembly............................................................ $12 per direct labor hour
(dlh)Setup.................................................................. $40 per
setupInspecting............................................................ $18 per inspectionProduction
scheduling.............................................. $8 per production
orderPurchasing............................................................ $5 per purchase orderThe activity-base
usage quantities and units produced for each product were as follows: Stationary Bicycle
TreadmillMachine hours 1,680 1,070Direct labor hours 243 131Setups 45 20Inspections 158
94Production orders 60 32Purchase orders 240 98Units produced 500 350Use the activity rate
and usage information to compute the total activity costs and the activity costs per unit for each
product.View Solution:
CardioTrainer Equipment Company manufactures stationary bicycles and treadmills The
products

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