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Alexeev081 [22]
3 years ago
6

A company makes bikes from recycled metal. For a recent job lot of 200 bikes, the company incurred direct materials costs of $6,

000 and direct labor costs of $2,000. Factory overhead applied to this job is $9,000. What is the cost per bike
Business
1 answer:
uranmaximum [27]3 years ago
8 0

Based on the number of bikes produced and the costs incurred, the cost per bike would be<u> $85 per bike. </u>

First find the total cost of producing all the bikes.

<h3>Total cost of production </h3>

= Direct materials + Direct labor + Factory overhead

= 6,000 + 2,000 + 9,000

= $17,000

<h3>What is the cost per Bike?</h3>

= Total cost of production / Number of bikes

= 17,000 / 200

= 85 bikes

In conclusion, it was $85 per bike.

Find out more on cost per unit at brainly.com/question/23700866.

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