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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

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

First find the total cost of producing all the bikes.

Total cost of production

= Direct materials + Direct labor + Factory overhead

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

= $17,000

What is the cost per Bike?

= 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 https://brainly.com/question/23700866.

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