Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. product costs using activity rates hercules inc. m

Product Costs using Activity Rates Hercules Inc. manufactures elliptical exercise machines and treadmills. The products are produced...

70.2K

Verified Solution

Question

Accounting

Product Costs using Activity Rates

Hercules Inc. manufactures elliptical exercise machines andtreadmills. The products are produced in its Fabrication andAssembly production departments. In addition to productionactivities, several other activities are required to produce thetwo products. These activities and their associated activity ratesare as follows:

ActivityActivity Rate
Fabrication$27per machine hour
Assembly$9per direct labor hour
Setup$58per setup
Inspecting$20per inspection
Production scheduling$10per production order
Purchasing$7per purchase order

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

Activity BaseElliptical MachinesTreadmill
Machine hours1,680991
Direct labor hours494193
Setups6119
Inspections654392
Production orders7816
Purchase orders173106
Units produced288193

Use the activity rate and usage information to determine thetotal activity cost and activity cost per unit for each product.If required, round the per unit answers to the nearestcent.

Total Activity CostActivity Cost Per Unit
Elliptical Machines$$
Treadmill$$

Answer & Explanation Solved by verified expert
4.3 Ratings (548 Votes)
Ans Total Activity Cost Activity cost per unit Elliptical machines 68415 23755 Treadmill 38338 19864 WORKING NOTES Calculations for Total Activity cost Activity    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

How do wind turbines generate electricity? The generator spins the windmills Moving air provides the...

Biology
Q

In the following exercise find the coordinates of the vertex for the parabola defined by...

Basic Math
Q

Describe the smooth muscle layers in the wall of the esophagus, stomach, small intestine & large...

Medical Sciences
Q

6 for independent practice inished check the solutions with your teacher ven rotation Create a...

Geometry
Q

Determine whether the equation is linear or not. Then graph the equation by y =...

Algebra
Q

Please explain, in excel. Watershed is a media services company that provides online...

Accounting
Q

I need help solving this The management of Zigby Manufacturing prepared...

Accounting
Q

Bonds are priced at the present value of the a. principal. b. periodic interest payments...

Accounting
Q

1. Maple Company's wood pressing machine was purchased for $18 million on January 1, 20X1....

Accounting
Q

show all the work Haas Company manufactures and sells one product. The following...

Accounting
Q

If variable manufacturing costs are $16 per unit and total flxed manufacturing costs are $335,000,...

Accounting
Q

Question 1 Determine the missing amount: Assets = Liabilities + Owner's Equity 164000419000

Accounting