Question
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 Screamer
Total Number of units assembled(Fatboy: 990) (Screamer: 1,980) (Total: 2,970)
Materials cost per unit (Fatboy: $2,100) (Screamer $3,100)
Other costs:
Direct labor Total $ 3,207,600
Indirect materials Total 534,600
Other overhead Total 1,603,800
Required: Howrley-David uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in August.
Fatboy = ..... Unit cost
Screamer= .... Unit cost
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