question 1) Tri-bikes manufactures two different levels of bicycles: the Standard and the Extreme. The total overhead of $300,000 has traditionally been allocated by direct labor hours, with 150,000 hours for the Standard and 50,000 hours for the Extreme.

After analyzing and assigning costs to two cost pools, it was determined that machine hours is estimated to have $200,000 of overhead, with 4,000 hours used on the Standard product and 1,000 hours used on the Extreme product.

It was also estimated that the setup cost pool would have $100,000 of overhead, with 1,000 hours for the Standard and 1,500 hours for the Extreme.

A. What is the overhead rate per product under Traditional costing?

What is the overhead rate under Absorption Costing for:

B. The machine pool overhead rate

C. The setup pool overhead rate

Question 2)

EB15. LO 6.5 Using this information from Outdoor Grills, what is the cost per unit under

A. Variable costing?

B. Absorption Costing

Information
Production Direct materials	90,000 $110
Direct labor	150
Variable manufacturing overhead	75
Fixed manufacturing overhead	$2,700,000