Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bike-O-Rama produces two bike models: Voltage and EasyRider. Departmental overhead data follow. Department Budgeted Cost Allocation Base Budgeted Usage Fabricating $ 109,200 Machine hours (MH)

Bike-O-Rama produces two bike models: Voltage and EasyRider. Departmental overhead data follow.

Department Budgeted Cost Allocation Base Budgeted Usage
Fabricating $ 109,200 Machine hours (MH) 8,400 MH
Assembly 106,400 Direct labor hours (DLH) 1,900 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 3.0 MH 4.0 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 $ 282 $ 94 $ 51
EasyRider 175 84 19

For each model, compute gross profit per unit (selling price per unit minus product cost per unit).

image text in transcribed image text in transcribedimage text in transcribedimage text in transcribed

4. 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. Compute departmental overhead rates using (a) machine hours to allocate budgeted Fabricating costs and (b) direct labor hours to allocate budgeted Assembly costs. 4. 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. The company reports the following actual production usage data. Compute the overhead cost per unit for each model. Note: Round your "Hours per unit" amounts to 1 decimal place and other answers to 2 decimal places. 4. 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. The company reports additional information below. For each model, compute the product cost per unit. Note: Round your answers to 2 decimal places. 4. 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. For each model, compute gross profit per unit (selling price per unit minus product cost per unit). Note: Round your answers to 2 decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Water Audits And Loss Control Programs Manual Of Water Supply Practices M36

Authors: AWWA Staff

3rd Edition

1583216316, 978-1583216316

More Books

Students also viewed these Accounting questions

Question

please try to give correct answer 3 7 3 . .

Answered: 1 week ago

Question

The amount of work I am asked to do is reasonable.

Answered: 1 week ago

Question

The company encourages a balance between work and personal life.

Answered: 1 week ago