No need to show working.

Due Co. manufactures two bicycles, the Mountain Bike and the Street Racer, and anticipates producing 8,000 Mountain Bikes and 4,000 Street Racers.

The direct material cost and direct labor cost for each bike are:

	Direct Materials	Direct Labor
Mountain Bike	$120	$240
Street Racer	$60	$160

Dues budgeted overhead cost of $2,140,000 is based on the following:

• Set-up procedures $ 400,000
• Assembling stations $1,200,000
• Finishing $ 240,000
• Shipping $ 300,000

The following activities are needed to manufacture the bikes:

	Set-up Procedures	Assembling Stations	Finishing	Shipping
Mountain Bike	6,000	12,000	8,000	4,000
Street Racer	4,000	8,000	4,000	2,000

For Questions 32 35, assume Due uses activity-based costing.

1. What is the cost driver rate for finishing?

2. What is the cost driver rate for shipping?

3. What is the manufacturing overhead cost per bike for the Mountain Bike?

4. What is the total cost per bike of the Mountain Bike?