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Surfin Co. produces durable surf boards for its customers surfing in Australia. There are three main sellers, WorstWaves, SharkAttack, and CoralCrash. Each have different types
Surfin Co. produces durable surf boards for its customers surfing in Australia. There are three main sellers, WorstWaves, SharkAttack, and CoralCrash. Each have different types of wood, with SharkAttack being the most inexpensive (makes sense), CoralCrash is between SharkAttack and Worst Waves which is the most expensive. Cost differences due to waxing/materials depending on use vary from 10-15% between board. The manufacturing process is done mostly by hand, which differs between board by 10%-15%; 1 hour of labor is at minimum $100. You are provided a listing of expected overhead costs via the budget created by managers. You also know the number of Direct Material units, Direct Labor Hours and cost, as well as Machine Hours per type as per this budget provided Q) If you were asked to apply your professional judgment knowing the information above only, how would you allocate manufacturing overhead? Explain your reasonings
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