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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 Total Number of units assembled 960 1,920 2,380 Materials cost per unit $ 2,900 $3,900 Other costs: Direct labor 53,283,200 Indirect materials Other overhead Screamer 547,200 1.641.600 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 Screamer Total 0 Operation cost Materials cost Total cost Number of units Unit cost 960 1.920
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