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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
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: Number of units assembled Materials cost per unit Other costs: Direct labor Indirect materials Other overhead Fatboy 810 Screamer 1,620 Total 2,430 $ 2,800 $ 3,800 $2,041,200 340,200 1,020,600 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 Operation cost Materials cost Total cost Number of units Unit cost Screamer References eBook & Resources Worksheet Total Difficulty: 2 Medium Learning Objective: 06-06 Describe the three basic types of product costing systems:
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