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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. Th following data are available for August: Fatboy 1,170 $ 2,900 Screamer 2,340 $ 3,900 Total 3,510 Number of units assembled Materials cost per unit Other costs: Direct labor Indirect materials Other overhead $3,790,800 631,800 1,895,400 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 Operation cost Materials cost Total cost Number of units Unit cost
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