1 & 2

PROBLEM 1 (23 pts) Upton Cycling produces two models of bicycles called Racer and Trailmaster. It uses activity-based costing to assign overhead to its two products from three activity pools. Data for the assigning of overhead is as follows USE OF DRIVER BY PRODUCT Activity OH amount Cost Driver Total activity Racer Trailmaster DM acquisition $8,000 Purchase orders SO orders 10 orders 40 orders Fabricating $60,000 Machine hours 4,000 MH 1,800 MH 2,200 MH Finishing $40,000 Labor tue 1,000 DLH 450 DLH 550 DLH Required: Prepare a table showing the total amount of overhead allocated to each model of bicycle PROBLEM 2 (5 pts.) Rowe, Inc. sells a variety of office supplies. It estimates $2,500,000 in revenue this coming year. It estimates it costs to be $484,000 of fixed costs and $1,400,000 of variable costs. Calculate Rowe's breakeven point in sales dollars for the coming year