All Terrain manufacturers bicycles for various sporting goods stores, and their top sellers include a cruiser bike and a mountain bike. They recently completed a batch that included 497 cruiser bikes and 766 mountain bikes. A second batch for a different supplier included 545 cruiser bikes and 812 mountain bikes. Costing information for the bikes is as follows:
The cost of materials is $6.78 for each cruiser bike and $7.86 for each mountain bike. What is the total cost assigned to the second batch?

Question

All Terrain manufacturers bicycles for various sporting goods stores, and their top sellers include a cruiser bike and a mountain bike. They recently completed a batch that included 497 cruiser bikes and 766 mountain bikes. A second batch for a different supplier included 545 cruiser bikes and 812 mountain bikes. Costing information for the bikes is as follows:
 The cost of materials is $6.78 for each cruiser bike and $7.86 for each mountain bike. What is the total cost assigned to the second batch?

Quizplus · Accepted Answer

This question requires familiarity with operation costing. To calculate the total cost assigned to the second batch, calculate the total cost of each type of bike within the batch. Cruiser Bike: ($4.25 × 545) + ($3.58 × 545) + ($1.02 × 545) + ($1.89 × 545) + ($2.42 × 545) + ($2.89 × 545) + ($6.78 × 545) = $2,316.25 + $1,951.10 + $555.90 + $1,030.05 + $1,318.90 + $1,575.05 + $3,695.10 = $12,442.35. Mountain Bike: ($4.25 × 812) + ($3.58 × 812) + ($1.58 × 812) + ($2.42 × 812) + ($2.89 × 812) + ($7.86 × 812) = $3,451.00 + $2,906.96 + $1,282.96 + $1,965.04 + $2,346.68 + $6,382.32 = $18,334.96. Lastly, combine the total costs of each type of bike to get the total cost for the batch: $12,442.35 + $18,334.96 = $30,777.31.

All Terrain Manufacturers Bicycles for Various Sporting Goods Stores, and Their