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Bike - O - Rama produces two bike models: Voltage and EasyRider. Departmental overhead data follow. Department Budgeted Cost Allocation Base Budgeted Usage Fabricating $

Bike-O-Rama produces two bike models: Voltage and EasyRider. Departmental overhead data follow.
Department Budgeted Cost Allocation Base Budgeted Usage
Fabricating $ 119,000 Machine hours (MH)8,500 MH
Assembly 100,000 Direct labor hours (DLH)2,000 DLH
Required:
Compute departmental overhead rates using (a) machine hours to allocate budgeted Fabricating costs and (b) direct labor hours to allocate budgeted Assembly costs.
The company reports the following actual production usage data. Compute the overhead cost per unit for each model.
Voltage EasyRider
Machine hours per unit 2.0 MH 3.0 MH
Direct labor hours per unit 1.5 DLH 0.5 DLH
The company reports additional information below. For each model, compute the product cost per unit.
Per Unit Selling Price Direct Materials Direct Labor
Voltage $ 265 $ 95 $ 46
EasyRider 1638520
For each model, compute gross profit per unit (selling price per unit minus product cost per unit).Complete this question by entering your answers in the tabs below.
Required 4
Compute departmental overhead rates using (a) machine hours to allocate budgeted Fabricating costs and (b) direct I
hours to allocate budgeted Assembly costs.
Fabricating departmental overhead rate
Assembly departmental overhead rate
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