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PROBLEM 1 (23 pts.) Upton Cycling produces two models of bicycles called Racer and Trailmaster. It uses activity-based costing to assign overhead to its
PROBLEM 1 (23 pts.) Upton Cycling produces two models of bicycles called Racer and Trailmaster. It uses activity-based costing to assign overhead to its two products from three activity pools. Data for the assigning of overhead is as follows: Cost Driver Purchase orders Machine hours Labor time Total activity 50 orders 4,000 MH USE OF DRIVER BY PRODUCT Racer 10 orders 1,800 MH 450 DLH Trailmaster 40 orders 2,200 MH 550 DLH OH amount Activity DM acquisition Fabricating Finishing S8,000 $60,000 $40,000 1,000 DLH Required: Prepare a table showing the total amount of overhead allocated to each model of bicycle.
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