Activity-based costing requires a cost driver for each cost pool. Use the following information to assign the costs to the product lines using the activity-based costing approach. Driver Amount for Composite Kayaks Activity Driver Amount for Rotomoulded Kayaks Cost Driver Designing new models Number of models 3 1 Creating and testing prototypes Number of prototypes 7 2 Creating moulds for kayaks Number of moulds 12 1 Supervising production employees Number of employees 113 11 Curing Number of days of curing time 15.000 2.000 What amount of overhead should be assigned to each composite kayak using this method? What amount of overhead should be assigned to each rotomoulded kayak using this method? (Round cost assigned per unit to 2 decimal places, eg. 125.25) Rotomoulded Composite $ Total cost assigned $ $ $ Cost assigned per unit Attempts: 0 of 1 used Submit An gere for M ICO Another method of allocating overhead is to use direct labour dollars as an allocation basis. Remembering that the costs of operating the oven and the vacuum line have been assigned directly to the product lines, assign the remaining costs using direct labour dollars as the allocation basis. Then, determine the amount of overhead that should be assigned to each of the units in each line. (Round cost assigned per unit to 2 decimal places, eg. 125.25) Composite Rotomoulded Total cost assigned $ $ Cost assigned per unit $ $ Activity-based costing requires a cost driver for each cost pool. Use the following information to assign the costs to the product lines using the activity-based costing approach. Driver Amount for Composite Kayaks Driver Amount for Rotomoulded Kayaks Activity Cost Driver 3 Designing new models Number of models 1 Creating and testing prototypes Number of prototypes 7 2 Number of moulds 12 1 Creating moulds for kayaks Supervising production employees Curing Number of employees 13 12 Number of days of curing time 15.000 2.000 What amount of her to each composite kayak using this method? What amount of overhead should be As Susan examines the data, she decides that the cost of operating the oven for the rotomoulded kayaks and the cost of operating the vacuum line for the composite kayaks can be directly assigned to each of these product lines and do not need to be allocated with the other costs. For purposes of this analysis, assume that Current Designs uses $235,000 in direct labour costs to produce 1.000 composite kayaks and $321,250 in direct labour costs to produce 4,000 rotomoulded kayaks each year. One method of allocating overhead would assign the common costs to each product line by using an allocation basis such as the number of employees working on each type of kayak or the amount of factory space used for the production of each type of kayak. Susan knows that about 50% of the area of the plant and 50% of the employees relate to the composite kayaks, and the remaining space and other employees are used for the rotomoulded kayaks. Using this information, and remembering that the costs of operating the oven and the vacuum lines have been directly assigned, determine the total amount to be assigned to the composite kayak line and the rotomoulded kayak line, and the amount to be assigned to of the units in each line. (Round cost assigned per unit to 2 decimal places, eg. 125 25.) Composite Rotomoulded Total cost assigned $ $ Cost assigned per unit $ $ Another method of allocating overhead is to use direct labour dollars as an allocation basis. Remembering that the costs of operating the oven and the vacuum line have been assigned directly to the product lines assign the remaining costs using direct labour dollars as the allocation basis. Then, determine the amount of overhead that should be assigned to each of the units in each line. (Round cost assigned per unit to 2 decimal places, eg. 125.25.) Composite Rotomoulded Question 35 of 35