Question
C-Cubed uses an activity-based costing system for its Fit-Right-Bike. C-Cubed's direct labor rate was $30/hr. The following information is available for the Fit-Right-Bike: Activity Cost
C-Cubed uses an activity-based costing system for its Fit-Right-Bike. C-Cubed's direct labor rate was $30/hr. The following information is available for the Fit-Right-Bike: Activity Cost Pool Estimated Total Overhead Cost Custom Design Process $10,000 Supporting Direct Labor $20,000 Customer Service $10,000 Expected Total Activity 200 custom designs 100 hours 4 customers Actual Total Activity 250 designs 200 hours 5 customers 100 bikes sold Bikes-R-Us Selling Price Per Unit Direct Materials Per Bike Direct Labor-Hours Per Bike Custom Designs Supporting Direct Labor Calculate the customer margin for Bikes-R-Us. Multiple Choice $41,500 $11,500 $7,500 $37,500 $1,500 $400 30 hours 100 designs 25 hours
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