Squamish Co. makes three product road bikes, mountain bikes and hybrid bikes. The road bikes are a low volume product that is more specialized while the mountain bikes and hybrid bikes are of higher volume and easier to manufacture.

Squamish Co. allocated manufacturing overhead costs to the three products for the month of May. Squamish Co. has an estimated overhead cost of $2,000,000 and uses 200,000 machine hours for the year. Squamish Co. has decided to allocated overheads on the basis of machine hours.

At the end of May, Squamish Co. used 6,000 machine hours for manufacturing road bikes, 14,000 machine hours for manufacturing mountain bikes and 13,000 hours for manufacturing hybrid bikes.

Squamish Co. estimates the following activities to be of importance and notes the estimated number of units:

Activity Base	Amount	Total Costs
Purchase Materials	400,000 pieces	300,000
Machine Setups	70,000 set ups	600,000
Inspections	7,000 inspection hours	700,000
Running Machines	40,000 hours	400,000
Total Overhead		2,000,000

Information	Road Bike	Mountain Bike	Hybrid Bike
Opening Inventory	30	100	50
Produced Inventory	40	20	132
Ending Inventory	10	20	2
Sold Inventory	60	60	180
Sales Price	$5,000	$4,000	$3,000
Direct Materials per bike	$800	$300	$200
Direct Labour hours	10	8	4
Direct Labour costs	$20	$15	$15
Purchase Materials (pieces)	3,000	2,000	1,000
Machine Setups (set ups)	5,000	2,500	3,000
Inspections (hours)	3,000	4,000	1,000
Running Machines (hours)	5,000	4,000	3,000

Part A: Given the following information prepare a schedule that calculates the full cost of the road bike using the activity based costing method.