Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 11 4 pts Scorpio makes premium bikes using two departments, assembly and painting. Assembly estimates using 899,000 machine hours and painting uses 47,000 machine

image text in transcribed

Question 11 4 pts Scorpio makes premium bikes using two departments, assembly and painting. Assembly estimates using 899,000 machine hours and painting uses 47,000 machine hours. Fixed manufacturing overhead costs are estimated to be $8,000,000 for assembly and $661,000 for painting. Variable manufacturing overhead per machine hour is $11.5 in both departments. Machine hours are used as the allocation base for a plantwide PDOR. A bike dealership shop places an order for 20 bikes. The order requires 1,080 machine hours in assembly and 139 machine hours in painting. The job also requires $54,000 of direct materials and $108,000 of direct labor. What is the unit product cost (per bike) for the job when Scorpio uses a plantwide approach to calculating its PDOR? Round your answer to 2 d.p. Do not round intermediary calculations

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mastering Accounting Skills

Authors: Margaret Nicholson

3rd Edition

1403992703, 978-1403992703

More Books

Students also viewed these Accounting questions

Question

What can PMT do to improve its safety practices and policies?

Answered: 1 week ago