2. Sunshine Company sells custom made surf boards in California. The finance manager has supplied the following data from its activity-based costing system:

Order 1 10 units of Orange Tangerine Order 2 Order 3 20 units of Blue Waves 15 units of Orange Tangerines and 15 units of Blue Waves Overhead Costs Staff Salaries $500,000 Selling and administration overheads 200,000 Total Overhead Costs $700,000 Activity Cost Pool Product design Activity Measure Number of ne'lmr designs Total Activity for the Year 500 new designs Order Processing Number of Customer orders 700 orders Customer Support Number of Customers 400 customers Others Organization sustaining activity Not applicable Distribution of Resource Consumption across Activities Product Order Customer Other Total Design Processing Support Staff Salaries 40% 30% 20% 10% 100% Selling and 40% 100% administration overheads During the year Sunshine Company completed three individual orders for a new customer, Tarpaper Inc. Two different designs of surfboards were prepared for and sold to this new customer Orange Tangerine and Blue Waves. Data concerning the two designs and customer orders are as follows: Orange Tangerine Blue Waves Selling price Direct materials Direct labor 5700 per unit 5280 per unit 5100 per unit 5500 per unit 5180 per unit 550 per unit