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Question: brooklyn cycles produces custom bicycles and has used a traditional...
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Brooklyn Cycles produces custom bicycles and has used a traditional manufacturing overhead application rate based on direct labor hours. Currently, overhead is applied at the rate of $27.3/DLH. Brooklyn is now considering using activity-based driver rates to improve manufacturing overhead costing accuracy. Budgeted manufacturing overhead costs for expected driver activity are as follows: Budgeted Cost Budgeted Activity Machining time $ 297,190 11,300 hours Direct labor time 325,890 21,300 hours Inspection time 49,290 5,300 hours Required: Calculate manufacturing overhead rates that would be applied to bicycles produced using activity-based costing. (Round your answers to 1 decimal place.)
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