Bike-O-Rama produces two bike models: Voltage and EasyRider. Departmental overhead data follow.

Required
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.

3. The company reports additional information below. For each model, compute the product cost per unit.

4. For each model, compute gross profit per unit (selling price per unit minus product cost per unit).

Transcribed Image Text:

Department Fabricating.. Assembly.. Budgeted Cost $100,000 75,000 Allocation Base Machine hours (MH) Direct labor hours (DLH) Budgeted Usage 8,000 MH 1,500 DLH