Question 4 of 6 -11 III View Policies Current Attempt in Progress Bellevue Surfboard produces two surfboards. One is a recreational model made from polyurethane foam covered with fiberglass cloth and epoxy resin. The other is a high performance competition board that uses carbon fiber instead of fiberglass. The carbon fiber boards are custom-made and require more hand finishing and setup time. Most of the company's sales come from the recreational model, but recently sales of the competition boards have been increasing The following information is related to the products for the most recent year: Recreational 1,680 $672.00 Competition 224 $1.296.00 Sales and production (number of surfboards) Sales price per board Unit costs: Direct materials Direct labor Overhead Total unit cost Gross profit Overhead costs: 204.00 128.00 182 514 $158 280.00 336.00 464 1.080 $216 O i HD search e omework Question 4 of 6 -/1 514 1,080 $216 $158 Total unit cost Gross profit Overhead costs: Building depreciation Equipment depreciation Materials ordering Quality control Maintenance and security Setup and drafting Supervision Total overhead Overhead rate based on direct labor dollars: Total overhead Total labor ($128.00 x 1.680) + ($336.00* 224) $56,000 67,200 28,000 73.360 42.000 42.560 67.200 $376,320 $376,320 $290,304 Overhead ratex $1.30 per direct labor dollar ($376,320-$290,304) WILMA honrada De here to search o Question 4 of 6 -11 HII Overhead rate * $1.30 per direct labor dollar. ($376,320 - $290,304) Vikki Mason, the president of Bellevue, is concerned that the traditional cost system used by Bellevue may not be providing accurate cost information and that the sales price of the competition surfboard might not be enough to cover its true cost. (c) Assume that Bellevue retains a consultant to create an activity-based costing system, and the consultant develops the following data: Cost Pool Building Equipment Materials ordering Quality control Maintenance and security Setup and drafting Supervision Amount $56,000 67,200 28.000 73,360 42.000 42.560 67,200 $376,320 Driver Square footage Machine hours Number of orders Number of inspections Square footage Number of setups Direct labor cost Driver Activity Recreational Competition Boards Boards 8,960 2.240 4,760 840 112 336 112 448 8,960 2.240 56 224 $201.600 $67.200 e to search e D PO Maintenance and security Setup and drafting Supervision 42,000 42,560 67,200 $376,320 Square footage Number of setups Direct labor cost 8,960 56 $201.600 2,240 224 $67,200 Determine the overhead allocation to each line of surfboards using an activity-based costing approach, and compute the total unit costs for each model surfboard. (Round allocation rate and final answer to 2 decimal places, eg, 15.25.) Recreational Competition $ Overhead allocation per surfboard Total unit costs per surfboard $ e Textbook and Media Attempts: 0 of 3 used Submit Answer Stor Loto ORH to search
