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Bike-O-Rama produces two bike models: Voltage and EasyRider. Departmental overhead data follow. Department Fabricating Assembly Required: Budgeted Cost $ 147,000 Allocation Base Machine hours
Bike-O-Rama produces two bike models: Voltage and EasyRider. Departmental overhead data follow. Department Fabricating Assembly Required: Budgeted Cost $ 147,000 Allocation Base Machine hours (MH)) 145,200 Direct labor hours (DLH) Budgeted Usage 9,800 MH 3,300 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 2.0 DLH EasyRider 4.0 MH 0.5 DLH 3. The company reports additional information below. For each model, compute the product cost per unit. Per Unit Voltage EasyRider Selling Price $ 290 195 Direct Materials $ 108 98 Direct Labor $ 47 20 4. For each model, compute gross profit per unit (selling price per unit minus product cost per unit).
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