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Fast Track produces two types of exercise treadmills: regular and deluxe. The exercise craze is such that Fast Track could use all its available machine
Fast Track produces two types of exercise treadmills: regular and deluxe. The exercise craze is such that Fast Track could use all its available machine hours to produce either model. The two models are processed through the same production departments. Data for both models are as follows: data Per Unit Deluxe Regular Sales Price $1,010 $590 Costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead* Variable operating expenses Total costs Operating income 310 76 140 188 282 94 108 119 895 $115 36 71 529 $61 allocated on the basis of machine hours
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