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Pear City Sarthoard produces two surfboards. One arrational model made from polyurethane fotovered with fiber fans clothed epoxy resin. The other high performance competition board that uses carbon fiber instead of fiberglass. The carbon ther boards we custom made and require more and finishing and setup time, Most of the company's sales come from the recreational model but recentlyses of the competition boards have been increasing The following information is related to the products for the most recent year Competition Recreational 1.230 5492.00 5984.00 14400 98.00 205.00 246.00 379 795 5189 $113 Sales and production number of surfboards) Sales price per board Unit cost Direct materials Direct labor Overhead Total unit cost Gross profit Overhead cost Huilding depreciation Equipment depreciation Materials ordering Quality control Maintenance and security Setup and drafting Supervision Total overhead Overheadrate baned on direct labor dollars: Total overhead Totaltabor (59800 1.2301+(5246,00 1641 541.000 49.200 20,500 53,710 30.750 31.160 49.200 $275.520 $275,520 $160,884 Overhead rate 5171 per direct labor doll Overhead rate 5171 percettabor do $275520 5160 Val Mason, the president of Pear City, is concerned that the traditional cost ystem used by Pericity may not be provides accurate costination and that the sale price of the competition surfboard might not be enough to cover its true cost Id Asume that PeriCity retains a consultant to create an activity based casting system, and the commutant develop the following Driver Activity Recreational Competition Cast Pool 6,560 1,485 82 Louiment Material ordering Quality control Maintenance and security Setup and drafting Supervision Amount 541.000 49.200 20,500 51,710 30.750 31,160 49.200 $275.520 Driver Souarefoot Machine hours Number of orders Number of inspection Square foot Number of setups Direct labor cost 1.640 615 246 328 | 164 $49.200 560 41 5147.500 Determine the overhead location to each line of bowds using an activity based costing proach and compute the totalurit costs for each model surfboard. Round allocation rate and finalwer to 2 decimal 15.25) Recreational Competition Overhead allocation per surfboard 5 Tataluit costspersurtoard 5 5

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