Use the Following Information to Answer the Questions Below

• Information for Our 2 TOP Products, the Mountain Bike and BMX Bike, are Shown Below:
• We Need to Compare Traditional Costing to ABC Costing using the Information Below
• Traditional Costing uses Direct Labor Hours as the Cost Driver for ALL of the Manufacturing Overhead Amounts
• ABC Uses 3 Cost Pools to Allocate Overhead Amounts to Products and Jobs.
• Round All Total Amounts to the Nearest Dollar and Round Per Unit or Per Hour Amounts to Nearest Penny.

ESTIMATED Manufacturing Overhead Costs and ESTIMATED Cost Driver Amounts for the YEAR were as Follows;

1. Machinery Costs = $200,000 based on Machine Hours
2. Assembly Costs = $300,000 based on Assembly Hours,
3. Other Factory Overhead Costs = $100,000 based on Direct Labor Hours.
4. Estimated Machine Hours = 4,000 Hours
5. Estimated Assembly Hours = 1,500 Hours
6. Estimated Direct Labor Hours = 5,000 Direct Labor Hours

Actual Data for the Mountain Bikes for the Month of January Included;

• Direct Material Costs = $40,000, Direct Labor Costs = $20,000,
• Actual Units Completed = 2000 Bikes, Direct Labor Hours used = 1,000 DL-Hrs
• Machine Hour used = 600 Hours, Assembly Hours used = 300 Hours,

Actual Data for the BMX Bikes for the Month of January Included;

• Direct Material Costs = $40,000, Direct Labor Costs = $20,000
• Actual Units Completed = 2000 Bikes, Direct Labor Hours used = 1,000 hrs
• Machine Hours Used = 600 Hours, Assembly Hours used = 500 Hours

Show Your Answers as a number only NO Dollar Signs, Commas or Decimals except per Unit or per Hour Answers

Only Show Decimals for Per UNIT and Per HOUR Answers to 2 Decimal Places.

Compute the Estimated MOH Rate using Traditional Costing =

Compute the Cost to make All Mountain Bikes using Traditional Costing =

Compute the Cost to make ONE Mountain Bike using Traditional Costing =

Compute the Cost to make All BMX Bikes using Traditional Costing =

Compute the Cost to make ONE BMX Bike using Traditional Costing =

Compute the ABC Allocation Rate for Machine Costs =

Compute the ABC Allocation Rate for Assembly Costs =

Compute the ABC Allocation Rate for Other Factory Costs =

Compute the Cost to make All Mountain Bikes using ABC =

Compute the Cost to make ONE Mountain Bikes using ABC =

Compute the Cost to make All BMX Bikes using ABC =

Compute the Cost to make ONE BMX Bike using ABC =

Did Costs Shift between Products when switching from Traditional Costing to ABC Costing ? YES or NO = Answer with All CAPS.

What was the Single Biggest Reason for the Shift in Costs if Any ? Show your Answer with 1 word in ALL CAPITAL Letters and Spell correctly Chose from the Following. BMX, or MOUNTAIN, or MACHINE, or ASSEMBLY, or DL, or ABC, NONE.