Columbia Corporation (CC) manufactures three products: Bicycles, Tricycles, and Wooden Wagons. The annual production and sales of Bicycles is 300, Tricycles is 200 units, while 100 units of Wagons are produced and sold. Bicycles and Tricycles are produced by the Machining department while Wagons are produced by the woodwork department. The product costs and other information are as follows: Direct Material Direct Labor Machine hours $204 $220 Bicycles $186 $100 $195 $60 4 Tricycles $75 $40 3 Wagons The company has traditionally used direct labor hours to allocate its overhead to products. Bicycles require 3 direct labor hours per unit, Tricycles require 2 direct labor hours per unit, while Wagons require 1 direct labor hour per unit. The total estimated overhead for the period is $21,000 $50 The company is looking at the possibility of changing to an activity-based costing system for its products. In that case, it would allow Ma Department (consumes 75% of total overhead) to use machine hours and the Woodwork department (consumes 25% of total overhead) to use direct labor hours as their respective allocation bases? If CC changes its overhead allocation to departmental rates, what is the unit cost for a Bicycle? (Round your answer) $30 1

Columbia Corporation(CC) manufactures three products: Bicycles, Tricycles, and Wooden Wagons. The annual production and sales of Bicycles is 300 . Tricycles is 200 units, while 100 units of Wagons are produced and sold. Bicycles and Tricycles are produced by the Machining department while Wagons are produced by the woodwork department. The product costs and other information are as follows: The company has traditionally used direct labor hours to allocate its overhead to products. Bicycles require 3 direct labor hours per unit, Tricycles require 2 direct labor hours per unit, while Wagons require 1 direct labor hour per unit. The total estimated overhead for the period is $21,000 The company is looking at the possibility of changing to an activity-based costing system for its products. In that case, it would allow Machining Department (consumes 75% of total overhead) to use machine hours and the Woodwork department (consumes 25% of total overhead) to use direct labor hours as their respective allocation bases? If CC changes its overhead allocation to departmental rates, what is the unit cost for a Bicycle? (Round your answer) $204 $220 $186 $195