Product Costs using Activity Rates Hercules Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its 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: The activity-base usage quantities and units produced for each product were as follows: Use the activity rate and usage information to determine the total activity cost and activity cost per unit for each product. If required, round the per unit answers to the nearest cent.ActivityActivity RateFabrication$24per machine hourAssembly$12per direct labor hourSetup$54per setupInspecting$29per inspectionProduction scheduling$13per production orderPurchasing$10per purchase order.

1. Product Costs using Activity Rates
Hercules Inc. manufactures elliptical exercise machines and treadmills. The products are
produced in its 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:
The activity-base usage quantities and units produced for each product were as follows:
Use the activity rate and usage information to determine the total activity cost and activity cost
per unit for each product. If required, round the per unit answers to the nearest
cent.ActivityActivity RateFabrication$24per machine hourAssembly$12per direct labor
hourSetup$54per setupInspecting$29per inspectionProduction scheduling$13per production
orderPurchasing$10per purchase order