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Bike-O-Rama produces two bike models: Voltage and EasyRider. Departmental overhead data follow. Department Fabricating Assembly Budgeted Cost $ 131,600 159,500 Allocation Base Machine hours
Bike-O-Rama produces two bike models: Voltage and EasyRider. Departmental overhead data follow. Department Fabricating Assembly Budgeted Cost $ 131,600 159,500 Allocation Base Machine hours (MH) Direct labor hours (DLH) Budgeted Usage 9,400 MH 2,900 DLH Required: 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 EasyRider 3.0 MH 1.4 DLH 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 $ 274 180 Direct Materials $ 104 Direct Labor $ 40 94 16 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 Show less A
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