Bike-O-Rama produces two bike models: Voltage and EasyRider. Departmental overhead data follow. Department Budgeted Cost Allocation Base Budgeted Usage Fabricating $ 124,700 Machine hours (MH) 8,600 MH Assembly 105,000 Direct labor hours (DLH) 2,100 DLH Required: Compute departmental overhead rates using (a) machine hours to allocate budgeted Fabricating costs and (b) direct labor hours to allocate budgeted Assembly costs. The company reports the following actual production usage data. Compute the overhead cost per unit for each model. Voltage EasyRider Machine hours per unit 2.0 MH 4.0 MH Direct labor hours per unit 1.8 DLH 0.5 DLH The company reports additional information below. For each model, compute the product cost per unit. Per Unit Selling Price Direct Materials Direct Labor Voltage $ 286 $ 96 $ 47 EasyRider 180 86 21 For each model, compute gross profit per unit (selling price per unit minus product cost per unit).
Bike-O-Rama produces two bike models: Voltage and EasyRider. Departmental overhead data follow. Department Budgeted Cost Allocation Base Budgeted Usage Fabricating $ 124,700 Machine hours (MH) 8,600 MH Assembly 105,000 Direct labor hours (DLH) 2,100 DLH Required: Compute departmental overhead rates using (a) machine hours to allocate budgeted Fabricating costs and (b) direct labor hours to allocate budgeted Assembly costs. The company reports the following actual production usage data. Compute the overhead cost per unit for each model. Voltage EasyRider Machine hours per unit 2.0 MH 4.0 MH Direct labor hours per unit 1.8 DLH 0.5 DLH The company reports additional information below. For each model, compute the product cost per unit. Per Unit Selling Price Direct Materials Direct Labor Voltage $ 286 $ 96 $ 47 EasyRider 180 86 21 For each model, compute gross profit per unit (selling price per unit minus product cost per unit).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bike-O-Rama produces two bike models: Voltage and EasyRider. Departmental overhead data follow.
Department Budgeted Cost Allocation Base Budgeted Usage
Fabricating $ 124,700 Machine hours (MH) 8,600 MH
Assembly 105,000 Direct labor hours (DLH) 2,100 DLH
Required:
Compute departmental overhead rates using
(a) machine hours to allocate budgeted Fabricating costs and
(b) direct labor hours to allocate budgeted Assembly costs.
The company reports the following actual production usage data. Compute the overhead cost per unit for each model.
Voltage EasyRider
Machine hours per unit 2.0 MH 4.0 MH
Direct labor hours per unit 1.8 DLH 0.5 DLH
The company reports additional information below. For each model, compute the product cost per unit.
Per Unit Selling Price Direct Materials Direct Labor
Voltage $ 286 $ 96 $ 47
EasyRider 180 86 21
For each model, compute gross profit per unit (selling price per unit minus product cost per unit).
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