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1. Howrley-David, Inc., manufactures two models of motorcycles: the Fatboy and the Screamer. Both models are assembled in the same plant and require the same
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Howrley-David, Inc., manufactures two models of motorcycles: the Fatboy and the Screamer. Both models are assembled in the same plant and require the same assembling operations. The difference between the models is the cost of materials. The following data are available for August: Total Fatboy 930 $ 2,900 $ 3,900 Screamer 1,860 Number of units assembled Materials cost per unit Other costs: 2,790 Direct labor Indirect materials $2,678,400 446,400 1,339,200 Other overhead Required: Howrley-David uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in August. Fatboy Screamer Total Operation cost Materials cost Total cost Number of units Unit cost
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