Rocky Biking Company has four activity cost pools and two different models of bike: Standard...
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Accounting
Rocky Biking Company has four activity cost pools and two different models of bike: Standard and Adventure. Below is the cost information:
Cost Drivers by Model
Activity Cost Pool Cost Driver Est. Overhead Standard Adventure
Ordering and Receiving Orders $210,000 750 300
Machine Setup Setups 135,000 150 300
Assembly Parts 1,125,000 225,000 375,000
Inspection Inspections 720,000 1,050 750
Instructions
Calculate the overhead cost per unit for each product. Production is 5,000 units of Standard and 3,000 units of Adventure. (Round your answer to the nearest DOLLAR)
Overhead cost per unit:
Standard = ____________________
Adventure = ___________________
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