. 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 $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 ? ?
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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