Hang Ten Company manufactures surf boards and uses an activity-based costing system to allocate all indirect manufacturing costs. Each surfboard consists of 30 parts, includes a total direct materials cost per lawn chair of $175, and requires 6.0 hours of machine time to produce. The company incurs no direct labor costs. Additional information follows:

Activity Activity Driver Volume Activity Rates Materials handling Number of parts $1.75 per part Machining Machine hours $3.00 per machine hour Assembling Number of parts $2.50 per part Packaging Number of finished units $6.75 per finished unit