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 Fabricating Assembly Required: Budgeted Cost $ 135,800 144,000 Allocation Base Machine

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

Bike-O-Rama produces two bike models: Voltage and EasyRider. Departmental overhead data follow. Department Fabricating Assembly Required: Budgeted Cost $ 135,800 144,000 Allocation Base Machine hours (MH) Budgeted Usage Direct labor hours (DLH) 9,700 MH 3,200 DLH 1. Compute departmental overhead rates using (a) machine hours to allocate budgeted Fabricating costs and (b) direct labor hours to allocate budgeted Assembly costs. 2. The company reports the following actual production usage data. Compute the overhead cost per unit for each model. Machine hours per unit Direct labor hours per unit Voltage 2.0 MH 1.6 DLH EasyRider 3.0 MH 0.6 DLH 3. The company reports additional information below. For each model, compute the product cost per unit. Per Unit Voltage EasyRider Selling Price $ 277 175 Direct Materials $ 107 97 Direct Labor $ 43 19 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. Required 1 Required 2 Required 3 Required 4 Compute departmental overhead rates using (a) machine hours to allocate budgeted Fabricating costs and (b) direct labor hours to allocate budgeted Assembly costs. Fabricating departmental overhead rate Assembly departmental overhead rate < Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 The company reports the following actual production usage data. Compute the overhead cost per unit for each model. (Round your "Hours per unit" amounts to 1 decimal place and other answers to 2 decimal places.) Department Fabricating Assembly Totals Voltage EasyRider Departmental Overhead Rate Hours per Unit Overhead Allocated Hours per Unit Overhead Allocated < Required 1 Required 3 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 The company reports additional information below. For each model, compute the product cost per unit. (Round your answers to 2 decimal places.) Per Unit Direct Materials Direct Labor Overhead Product Cost per Unit Voltage EasyRider < Required 2 Required 4 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 For each model, compute gross profit per unit (selling price per unit minus product cost per unit). (Round your answers to 2 decimal places.) Per Unit Voltage EasyRider Selling Price Product Cost Gross Profit < Required 3 Required 4 >

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

Financial accounting

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel

IFRS Edition

9781119153726, 978-1118285909

More Books

Students also viewed these Accounting questions

Question

What is a residual plot?

Answered: 1 week ago