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.
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|
Fatboy
|
Screamer
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Total
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|
Number of units assembled
|
2,000
|
4,000
|
6,000
|
|
Materials cost per unit
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$2,000
|
$3,000
|
|
|
Other costs:
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|
|
|
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Direct labor
|
|
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$6,000,000
|
|
Indirect materials
|
|
|
1,800,000
|
|
Other overhead
|
|
|
4,200,000
|
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.