Trax Company manufactures 75 stationary bikes and 100 rowing machines with three activities. Activity rates to produce these products follow. Activity Rate $ 20 Activity Assembly Purchasing $10 Inspection $25 Activity usage for each product follows. Compute the overhead cost per unit for the stationary bikes and the rowing machines. (Round Overhead per unit amounts to 2 decimal places.) Activity Cost Driver Stationary Bikes Direct labor hours Purchase orders Inspections per direct labor hour per purchase order per inspection Activity Usage Rowing Machines 300 12 15 500 18 20

Trax Company manufactures 75 stationary bikes and 100 rowing machines with three activities. Activity rates to produce these products follow. Activity Rate $ 20 Activity Assembly Purchasing $10 Inspection $25 Activity usage for each product follows. Compute the overhead cost per unit for the stationary bikes and the rowing machines. (Round Overhead per unit amounts to 2 decimal places.) Activity Cost Driver Stationary Bikes Direct labor hours Purchase orders Inspections per direct labor hour per purchase order per inspection Activity Usage Rowing Machines 300 12 15 500 18 20

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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