Exercise 9.27 (Algo) Reported Costs and Decisions (LO 9.1) McCleilan Recreaton manufactures and selis two models of paddle boards: Starter and Pro. The Starter model is a basic board used for instruction and purchased by novices. The Pro model is made with premium materials and comes with several accessories. The boards are produced to order, and there are no inventories at the end of the year. The cost accounting system at McClellan allocates overhead to aroducts based on direct labor cost Overhead in year 1 , which just ended, was $2,783,200. Data on units sold for year 1 along with the unit sales price and unit direct costs for the two mode's follow. Required: a. Compute product ine profits or ioss for the Starter model and the Pro model for year 1 . b. A study of overhead shows that without the Starter model, overhead would fall to $1,508,000. Assume all other revenues and costs would remain the same for the Pro model in year 2 . Compute product line profits for the Pro model in year 2 assuming the Starter model was not produced or sold. Complete this question by entering your answers in the tabs below. Compute product line profits or loss for the Starter model asd the Dro mode for year 1. Note: toss amounts should be ind cated by a minus sign. Exercise 9-27 (Algo) Reported Costs and Decisions (LO 9-1) McClelion Recreation manulactures and sells two models of poddle boards. Starter and Pro. The Starter model is a bosic board used for instruction and purchased by novices. The Pro model is mede with premium materials and comes with several accessories. The boards are produced to order, and there are no inventories at the end of the year. The cost accounting system at McClellan alocates overhead to products bosed on direct labor cost Overhead in year 1 , which just ended, was $2,783,200. Data on units sold for year 1 along with the unit sales price and unit direct costs for the two models follow: Required: a. Compute product line profits or loss for the Starter model and the Pro model for year 1 . b. A study of overhead shows that without the Starter model, overhead would foll to $1,508,000. Assume all other revenues and costs would remain the same for the Pro model in year 2 . Compute product ine prots for the Pro model in year 2 assuming the 5 tarter model was not produced or sold. Complete this question by entering your answers in the tabs below. A stuey of overined shows that without the 5 tarter modd, overtiead would fal to 51,508,000. Assume all other revenues and costs would remain the same for the Pro model in year 2 . Compute product line profits for the Pro nodel in yesr 2 assuming the starter model was not produced or sold. Note: Loss amount ahould be indicated by a minus sign