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The EZ Riders Company makes two types of motorcycles: 1) the Dirt Bike, 2) the Street Bike: 1) Estimated Overhead Costs are as follows:

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The EZ Riders Company makes two types of motorcycles: 1) the Dirt Bike, 2) the Street Bike: 1) Estimated Overhead Costs are as follows: Indirect Materials $60,000 Indirect Labor $40,000 2) These two activity cost pools use each type of overhead cost: Assembly $65,000 + Finishing $35,000 3) The activity drivers are as follows: Assembly - Direct Labor Hours (Expected Activity Level) 1,000; Finishing - Paint Cans (Expected Activity Level) 500 4) The Dirt Bikes consumed 425 direct labor hours and Street Bikes consumed 625 direct labor hours 5) The Dirt Bikes used 210 paint cans and Street Bikes used 310 paint cans Use activity based costing to allocate overhead to dirt bikes and street bikes

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