31 Dec 1) LEC, Inc makes two types of bicycles A standard
1) LEC, Inc makes two types of bicycles A standard model and a racing model LEC currently applies overhead using a predetermined rate based on direct-labor hours A group of company employees recommended that LEC switch to activity based costing and identified the following activities, cost drivers, estimated costs and estimated cost-driver units for 2015 for each activity centerActivityRecommended Cost Driver BaseEstimated CostsEstimated Cost Driver UnitsMachine SetupNumber of Production Runs$80,000100 RunsOrder ProcessingNumber of Orders$120,000200 OrdersEquipment MaintenanceNumber of Machine Hours$140,00010,000 HoursPackaging and ShippingNumber of Units Shipped$60,00015,000 UnitsIn addition management estimated 3000 direct labor hours for 2015Direct labor costs were $25 per hourAssume the following activities occurred in January of 2015:StandardRacingNumber of Units Produced750500Direct Material Costs$5,000$3,000Direct Labor Hours150100Number of Production Runs36Number of Orders88Number of Machine Hours500300Number of Units Shipped750550a) Compute the predetermined overhead rate for 2015 for each cost driver recommended by the employeesb) Compute the production costs for each product for January of 2015 using the cost drivers recommended by the employees and predetermined rates computed in part (a)c) Compute the predetermined overhead rate for 2015 using direct-labor hours as allocation based) Compute the production costs for each product for 2015 using direct labor hours as allocation base and the predetermined overhead rate computed in part (c)
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.