Witt Recreation Company $($WRC$)$ makes e$-$bikes. The company currently manufactures two models, the Coaster and the Traveler, in one

of the WRC factories. Both models require the same assembling operations. The difference between the models is the cost of

materials. The following data are available for the second quarter.

Required:

Witt Recreation Company uses operations costing and assigns conversion costs based on the the direct materials costs. Compute the

cost of each model assembled in the second quarter. Harmon Recycling Services $($HRS$),$ a not$-$for$-$profit organization, has two drop$-$off centers, Westside and Eastside. Data for the expected

operation in the next quarter follow.

Required:

a$.$ Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the

number of clients to allocate general operating costs.

b$.$ Based on the rates computed in requirement $($a$),$ what is the expected surplus $($revenues less costs$)$ for each center?

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Required A

Based on the rates computed in requirement $($a$),$ what is the expected surplus $($revenues less costs$)$ for each center?