FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Bike-O-Rama produces two bike models: Voltage and EasyRider. Departmental overhead data follow.
Department
Fabricating
Assembly
Required:
Budgeted Cost
$ 120,900
Allocation Base
Machine hours (MH)
Budgeted Usage
140,000
Direct labor hours (DLH)
9,300 MH
2,800 DLH
1. Compute departmental overhead rates using
(a) machine hours to allocate budgeted Fabricating costs and
(b) direct labor hours to allocate budgeted Assembly costs.
2. The company reports the following actual production usage data. Compute the overhead cost per unit for each model.
Machine hours per unit
Direct labor hours per unit
Voltage
2.0 MH
1.5 DLH
EasyRider
4.0 MH
0.5 DLH
3. The company reports additional information below. For each model, compute the product cost per unit.
Per Unit
Voltage
EasyRider
Selling Price
$ 273
182
Direct Materials
$ 103
93
Direct Labor
$ 50
15
4. For each model, compute gross profit per unit (selling price per unit minus product cost per unit).
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3 Required 4
The company reports the following actual production usage data. Compute the overhead cost per unit for each model.
Note: Round your "Hours per unit" amounts to 1 decimal place and other answers to 2 decimal places.
Voltage
EasyRider
Department
Departmental Overhead Rate
Hours per Unit
Overhead Allocated
Hours per Unit
Overhead Allocated
Fabricating
Assembly
$
13.00 per machine hour
2.0 MH
$
50.00 per direct labor hour
1.5 DLH
26.00
75.00
4.0 MH
0.5 DLH
Totals
101.00
0.00
expand button
Transcribed Image Text:Bike-O-Rama produces two bike models: Voltage and EasyRider. Departmental overhead data follow. Department Fabricating Assembly Required: Budgeted Cost $ 120,900 Allocation Base Machine hours (MH) Budgeted Usage 140,000 Direct labor hours (DLH) 9,300 MH 2,800 DLH 1. Compute departmental overhead rates using (a) machine hours to allocate budgeted Fabricating costs and (b) direct labor hours to allocate budgeted Assembly costs. 2. The company reports the following actual production usage data. Compute the overhead cost per unit for each model. Machine hours per unit Direct labor hours per unit Voltage 2.0 MH 1.5 DLH EasyRider 4.0 MH 0.5 DLH 3. The company reports additional information below. For each model, compute the product cost per unit. Per Unit Voltage EasyRider Selling Price $ 273 182 Direct Materials $ 103 93 Direct Labor $ 50 15 4. For each model, compute gross profit per unit (selling price per unit minus product cost per unit). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 The company reports the following actual production usage data. Compute the overhead cost per unit for each model. Note: Round your "Hours per unit" amounts to 1 decimal place and other answers to 2 decimal places. Voltage EasyRider Department Departmental Overhead Rate Hours per Unit Overhead Allocated Hours per Unit Overhead Allocated Fabricating Assembly $ 13.00 per machine hour 2.0 MH $ 50.00 per direct labor hour 1.5 DLH 26.00 75.00 4.0 MH 0.5 DLH Totals 101.00 0.00
The company reports additional information below. For each model, compute the product cost per unit.
Note: Round your answers to 2 decimal places.
Per Unit
Direct Materials
Direct Labor
Overhead
Product Cost per Unit
Voltage
$
103.00
$
50.00
$
101.00 $
254.00
EasyRider
93.00
15.00
108.00
expand button
Transcribed Image Text:The company reports additional information below. For each model, compute the product cost per unit. Note: Round your answers to 2 decimal places. Per Unit Direct Materials Direct Labor Overhead Product Cost per Unit Voltage $ 103.00 $ 50.00 $ 101.00 $ 254.00 EasyRider 93.00 15.00 108.00
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