Howrley-David, Inc., manufactures two models of motorcycles: the Fatboy and the Screamer. Both models are assembled in the same plant and require the same assembling operations. The difference between the models is the cost of materials. The following data are available for August:
Fatboy Screamer Total
Number of units assembled 630 1,260 1,890
Materials cost per unit $ 2,400 $ 3,400
Other costs:
Direct labor $1,814,400
Indirect materials 302,400
Other overhead 907,200
Required: Howrley-David uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in August.
fatboy screamer total
operation cost
materials cost
total cost
number of units
unit cost