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Larned Recreational builds two models of dune buggies: Sport and Custom. Both models require the same assembly and finishing process and are assembled in the
Larned Recreational builds two models of dune buggies: Sport and Custom. Both models require the same assembly and finishing
process and are assembled in the same factory. They differ in the quality and detail of the materials. The following data reflect
expected operations for the upcoming year.
HELP NEEDED WITH PART A AND B
a Larned Recreation uses operations costing and assigns conversion costs based on the number of units assembled. Compute the
cost per unit of the Sport and Custom models for the upcoming year.
b The financial team at Larned suggests that a twostage system be used to compute the product cost of the two models. Their
recommendation is to assign direct labor cost based on the number of units and overhead cost based on direct materials cost.
Compute the cost per unit of the Sport and Custom models for the upcoming year using the team's recommendation.
Complete this question by entering your answers in the tabs below.
Required
Required B
The financial team at Larned suggests that a twostage system be used to compute the product cost of the two models. Their
recommendation is to assign direct labor cost based on the number of units and overhead cost based on direct materials cost.
Compute the cost per unit of the Sport and Custom models for the upcoming year using the team's recommendation.
Note: Do not round intermediate calculations. Round "Unit cost" to decimal places.
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