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Piper Recreational Vehicles (PRV) modifies vans into recreational vehicles. PRV offers two models, the XC-2 and XC-6, which differ in the quality of the
Piper Recreational Vehicles (PRV) modifies vans into recreational vehicles. PRV offers two models, the XC-2 and XC-6, which differ in the quality of the basic van and the workmanship and machining detail that are used. The following data reflect expected operations for the next year. Number assembled XC-2 XC-6 Total 68 179 247 Materials cost per RV 5 40,700 $ 70,700 Other costs: Direct labor Depreciation Miscellaneous cost $ 1,605,550 875,120 3,731,380 Required: Piper Recreational Vehicles uses operations costing and assigns conversion costs based on the number of units assembled. Compute the expected cost of each model assembled next year. Operation cost Materials cost Total cost Unit cost XC-2 XC-6 Total $ 0
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