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,$116,000],[$Creating and testing prototypes,$168,000],[$Creating molds for kayaks,$38,000],[$Operating oven for the rotomolded kayaks,$],[$Operating the vacuum line for the composite kayaks,$],[$Supervising production employees,$184,000],[$Curing time $($the time that is needed for the chemical,$],[$processes to finish before the next step in the,$],[$production process; many of these costs are related,$],[$to the space required in the building$),],[$Total$,198,000]]$

As Diane examines the data, she decides that the cost of operating the oven for the rotomolded 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 assigned with the other costs.

For purposes of this analysis, assume that Current Designs uses $$246,000$ in direct labor costs to produce $1,000$ composite kayaks and $$255,250$ in direct labor costs to produce $4,000$ rotomolded kayaks each year.

$($a$)$

One method of assigning overhead would assign the common costs to each product line by using an assignment 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. Diane knows that about $50\%$ of the area of the plant and $50\%$ of the employees work on the composite kayaks, and the remaining space and other employees work on the rotomolded kayaks. Using this information and remembering that the costs of operating the oven and vacuum line have been directly assigned, determine the total amount to be assigned to the composite kayak line and the rotomolded kayak line, and the amount to be assigned to each of the units in each line. $($Round cost assigned per unit to $2$ decimal places, es$.125\mathrm{.}25.)$

$\backslash$table$[[,$Composite,,Rotomolded$],[$Total cost assigned,$$,,],[$Cost assigned per unit,vdots,$$,]]$