FINANCIAL ACCOUNTING
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ISBN: 9781259964947
Author: Libby
Publisher: MCG
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8. Tri-Bikes manufactures two different levels of bicycles – the Standard and the Extreme. The total
After analyzing and assigning costs to two cost pools, it was determined that machine hours is estimated to have $180,000 of overhead, with 4,000 hours used on the Standard product and 1,000 hours used on the Extreme product. It was also estimated that the setup cost pool would have $120,000 of overhead, with 1,000 hours for the Standard and 1,500 hours for the Extreme.
PLEASE NOTE: Predetermined overhead rates will be rounded to two decimal places and shown with "$" and commas as needed (i.e. $1,234.56). The rates will include their proper label according to the textbook examples (no abbreviations). All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345).
What is the overhead cost per product, under traditional costing.
Predetermined Overhead Rate = ?
Overhead for the Standard Model = ?
Overhead for the Extreme Model = ?
What is the overhead cost per product, under ABC costing.
Machine Pool: Predetermined Overhead Rate = ?
Setup Pool: Predetermined Overhead Rate = ?
| Cost Pool | Standard Model | Extreme Model |
| Machine Pool | ? | ? |
| Setup Pool | ? | ? |
| Total Overhead | ? | ? |
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