A company makes bikes from recycled metal. For a recent job lot of 200 bikes, the company incurred direct materials costs of $6,000 and direct labor costs of $2,000. Factory overhead applied to this job uses a predetermined overhead rate of 150% of the direct materials cost. What is the cost per bike?

Question 1Select one:

a.

$75

b.

$55

c.

$85

d.

$65

e.

$95