Tri-Bikes manufactures two different levels of bicycles - the Standard and the Extreme. The total overhead of $300,000 hastraditionally 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 ofoverhead, with 4,000 hours used on the Standard product and 1,000 hours used on the Extreme product. It was also estimated thatthe 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. $1,234.56). The rates will include their proper label according to the textbook examples (no abbreviations). All dollar amountsare rounded to whole dollars and shown with "$" 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 PoolStandard ModelExtreme ModelMachine PoolSetup PoolTotal Overhead

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Description: Tri-Bikes manufactures two different levels of bicycles - the Standard and the Extreme. The total overhead of $300,000 hastraditionally been allocated by direct labor hours, with 150,000 hours for the Standard and 50,000 hours for the Extreme.After

Tri-Bikes Traditional Costing: Predetermined overhead = Estimated total overhead / Estimated total…

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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 =

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 =

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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