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Spreadsheet please 45. Surfs Up manufactures surfboards. The company produces two models: the small board and the big board. Data regarding two boards are as
Spreadsheet please 45. Surfs Up manufactures surfboards. The company produces two models: the small board and the big board. Data regarding two boards are as follows: Products Direct Labor Annual Total Direct Hours per Production Labor Hours Units Iii 10.000 boards 15.000 35.000 boards 35.000 The big board requires $75 in direct materials per unit, whereas the small board requires $40. The company pays an average direct labor rate id $13 per hour. The company has historically used direct labor hours as the activity base for applying overhead to the boards. Manufacturing overhead is estimated to be $1,664,000 per year. The big board is more complex to manufacture than the small board because it requires more machine time. Blake Moore, the company's controller, is considering the use of activity-based costing to apply overhead because the surfboards require such different amounts of machining. Blake has identified the following four separate activity centers. Volume of Annual Activi Activity Center Big Board Small Board Cost SEtUI Special Design hours 364,000 100 desin Direct labor hours 900.000 15.000 35.000 300.000 9.000 1.000
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