Tri-bikes manufactures two different levels of bicycles: the Standard and theExtreme. The total overhead of $300,000 has traditionally been allocated by directlabor hours, with 150,000 hours for the Standard and 50,000 hours for theExtreme. After analyzing and assigning costs to two cost pools, it was determinedthat machine hours is estimated to have $200,000 of overhead, with 4,000 hoursused on the Standard product and 1,000 hours used on the Extreme product. It wasalso estimated that the setup cost pool would have $100,000 of overhead, with1,000 hours for the Standard and 1,500 hours for the Extreme. What is theoverhead rate per product, under traditional and under ABC costing?• Overhead for the Standard product under traditional costingOverhead for the Extreme product under traditional costing• Overhead for the Standard product under ABC costing.Overhead for the Extreme product under ABC costing

Traditional costing is the allocation of overhead to products based on the volume of production…

Tri-bikes manufactures two different levels of bicycles: the Standard and the Extreme. The total overhead of $300,000 has traditionally been allocated by di 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 determin that machine hours is estimated to have $200,000 of overhead, with 4,000 ho used on the Standard product and 1,000 hours used on the Extreme product. I also estimated that the setup cost pool would have $100,000 of overhead, wit 1,000 hours for the Standard and 1,500 hours for the Extreme. What is the overhead rate per product, under traditional and under ABC costing? • Overhead for the Standard product under traditional costing . Overhead for the Extreme product under traditional costing Overhead for the Standard product under ABC costing Overhead for the Extreme product under ABC costing

Tri-bikes manufactures two different levels of bicycles: the Standard and the Extreme. The total overhead of $300,000 has traditionally been allocated by di 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 determin that machine hours is estimated to have $200,000 of overhead, with 4,000 ho used on the Standard product and 1,000 hours used on the Extreme product. I also estimated that the setup cost pool would have $100,000 of overhead, wit 1,000 hours for the Standard and 1,500 hours for the Extreme. What is the overhead rate per product, under traditional and under ABC costing? • Overhead for the Standard product under traditional costing . Overhead for the Extreme product under traditional costing Overhead for the Standard product under ABC costing Overhead for the Extreme product under ABC costing

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 13EA: Tri-bikes manufactures two different levels of bicycles: the Standard and the Extreme. The total...

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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. k was also estimated that the setup cost pool would have $100000 of overhead, with 1,000 hours for the Standard and 1,500 hours for the Extreme. What is the overhead rate per product, under traditional and under ABC costing?
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