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Howrley-David, Inc., manufactures two models of motorcycles: the Fatboy and the Screamer. Both models are assembled in the same plant and require the same assembling
Howrley-David, Inc., manufactures two models of motorcycles: the Fatboy and the Screamer. Both models are assembled in the same plant and require the same assembling operations. The difference between the models is the cost of materials. The following data are available for August: Fatboy 1,050 $ 2,300 Screamer 2,100 $ 3,300 Total 3,150 Number of units assembled Materials cost per unit Other costs: Direct labor Indirect materials Other overhead $2,835,000 472,500 1,417,500 Required: Howrley-David uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost o each model assembled in August. Fatboy Screamer Total Operation cost Materials cost Total cost Number of units Unit cost
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