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Calculate machine-related costs total machine hours

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Reference no: EM133173219

Question - Route 66 is producing motorcycles. The product portfolio covers three different motorcycles: Race, Thrill and Roar. In order to produce one motorcycle of the design Race, there are 10 machine hours needed, for Thrill 16 machine hours and for Roar 23 machine hours. The budgeted production volume is 2.000 of each type. The company is budgeting € 2.940.000 for machine-related activities.

a) Please calculate the total machine hours.

b) Calculate Machine-related costs/ total machine hours (in €/machine hour)

c) Please calculate the costs in € allocated one motorcycle of the design Thrill.

d) Please identify the most plausible cost driver of machine-related activities.

Reference no: EM133173219

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