As you learned in the previous chapters, Current Designs has two main product lines$-$composite kayaks, which are handmade and very labor$-$intensive, and rotomolded kayaks, which require less labor but employ more expensive equipment. Current Designs' controller, Diane Buswell, is now evaluating several different methods of assigning overhead to these products. It is important to ensure that costs are appropriately assigned to the company's products. At the same time, the system that is used must not be so complex that its costs are greater than its benefits.

Diane has decided to use the following activities and costs to evaluate the methods of assigning overhead.

$\backslash$table$[[$Activities$,$Cost$],[$Designing new models,$$124,000$