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With an explanation please Howrley-David, Inc., manufactures two models of motorcycles: the Fatboy and the Screamer. Both models are assembled in the same plant and
With an explanation please
Howrley-David, Inc., manufactures two models of motorcycles: the Fatboy and the Screamer. Both models are assembled in the same plant and require the same assembling operations. The difference between the models is the cost of materials. The following data are available for August: FatboyScreamer 2,100 $ 2,600 S 3,600 Total 1,050 Number of units assembled Materials cost per unit Other costs 3,150 Direct labor Indirect materials Other overhead $2,646,000 441,000 1,323,000 Required Howrley-David uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in August. Fatboy Screamer Total Operation cost Materials cost Total cost Number of units Unit cost $ 1,470,0002,940,000 4,410,000 3,600 $1,472,600 2,943,600 0502,100 $1,402 X 1,402 2,600Step by Step Solution
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