Question

EA13 LO 6.4 Tri-bikes manufactures two different levels of bicycles the Standard and the Extreme. The total overhead of $300,000 has traditionally been allocated by direct labor hours with 150 000 hours for the Standard and 50,000 hours for the Extreme. After analyzing and assigning costs to two cost pools, it was determined that machine hours is estimated to have $200,000 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 $100,000 of overhead, with 1,000 hours for the Standard and 1500 hours for the Extreme. What is the overhead rate per product, under traditional and under ABC costing? EA14 LO 6.5 Cool Pool has these costs associated with production of 20,000 units of accessory products direct materials, $70 direct labor, $110, variable manufacturing overhead, $45 total fixed manufacturing overhead $800,000. What is the cost per unit under both the variable and absorption methods? EA15 LO 6,5 Using this information from Planters, Inc., what is the cost per unit under both variable and absorption costing? Production Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead 10,000 240 280 100 1,200,000

Answer 1

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