GBI management is seriously considering marketing a ruggedized version of their Touring Bike to "City Bike" bicycle rental programs. As a pilot, they have agreed to sell 30 City Bikes to a Dearborn-based start-up at a 10% discount off the usual price of $1000 per bike. Because this same bike design was previously offered on GBI's website as the poorly- selling Urban Delivery Bike, the material master data already exists in SAP and all of the raw materials needed to assemble the 30 City Bikes are already in inventory. The raw materials to build one City Bike have a moving average cost of $448.25. Planned costs for the order were based on 60 minutes of labor at the Night Shift rate of $50/hour. However, because the City Bikes are a little trickier to assemble than the children's bikes usually built on the Night Shift, the plant manager chose to hold the Day Shift over and pay the Overtime rate of $75/hour. Day Shift was able to complete the assembly of the City Bikes in 55 minutes/Bike. Steps 1. Gl to production order 2. Goods receipt from production 3. Production order settlement 4. Shipping 5. Billing How did you calculate the amount? 6. Customer Payment You will find it useful to calculate the variances: Bike-Share Bicycle Material Labor Total Planned (Estimate) 0 Actual (debit) Target (credit) Variance (debit - credit) Big Hint: For the Production steps (Steps 1 to 3) see slides 6, 7 and 8 for T Accounts 4 Video - Production. For the Fulfillment steps (Steps 4, 5 and 6) see slide 9 for T Accounts 3 Video - Fulfillment. 0 0 0 Two of the account names and one subledger name have been provided. You will need to fill in the rest. You can add more accounts if you need them. GENERAL LEDGER GENERAL LEDGER Account: Account: Account: Account: Account: Account: Account: SUBLEDGERS Account: Customer-UM Dearborn Extra Credit Essay Account: Account: Mfg Output Settlement Mfg Output Account: Settlement Variance Account: Account: Account: Question: (1 point) What would the Total Variance have been if the actual quantity produced had been 40 bikes instead of 30? Account Balances Case Study Account: