Please show work .. thank you! Please show work .. thank you! eBook Inc. ellipti

Question

Please show work .. thank you! Please show work .. thank you! eBook Inc. elliptical exercise machines and treadmills. The products are produced in its Fabrication and Assembly production several other Activity Assembly Setup Inspecting Production scheduling Purchasing $26 per machine hour $13 per direct labor hour $57 per setup $28 per inspection $14 per production order $11 per purchase order The activity-base usage quantities and units produced for each product were as follows 1,097 151 19 Machine hours 1,860 386 61 691 78 Direct labor hours Inspections 16 Check My Work 2 more Check My Work uses remainnp

Explanation / Answer

Total Activity cost Activity cost per unit Elliptical Machines $79,319 $278.31 Trademill $44,644 $233.74 Workings: Computation of Total activity cost Activity Elliptical mills Trademill Fabrication ($26 X 1,860) = $ 48,360 ($26 X 1,097) = $ 28,522 Assembly ($13 X 386) = $   5,018 ($13 X 151) = $   1,963 Setup ($57 X 61) = $   3,477 ($57 X 19) = $   1,083 Inspecting ($28 X 691) = $ 19,348 ($28 X 415) = $ 11,620 Production Scheduling ($14 X 78) = $   1,092 ($14 X 16) = $       224 Purchasing ($11 X 184) = $   2,024 ($11 X 112) = $   1,232 (a) Total Activity cost $ 79,319 $ 44,644 (b) Units produced 285 191 (a) / (b) Activity cost per unit $ 278.31 $ 233.74

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