2. Kumquat Toys Ltd. manufactures skateboards, boogie boards and scooters. Kumquat has always allocated the indirect manufacturing overhead based on direct labour hours at a rate of $250 per hour. The plant manager believes thai si not accurate and wants to change to a more accurate method of cost allocation. The accounting department provided the following analysis of the relationshps between production activities and manufacturing overhead: Activity Cost driver Allocation rate Materials handling number of parts $2.50 per part Assembly machine hours $45 per hour Packaging labour hours $4.00 per hour Assuming that a batch of 100 skareboards requires 1200 parts, 21 direct labour hours and 5 hours of machine time. What is the total indirect manufacturing costs allocated to each skateboard using activity-based costing? a) $5.59 b) $33.09 c) $50.475

d) $51.50