-) View Policies Current Attempt in Progress Speedway 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 1,860 $744.00 Competition 248 $1,440.00 228.00 140.00 200 568 $176 310.00 372.00 512 1,194 $246 Sales and production (number of surfboards) Sales price per board Unit costs Direct materials Direct labor Overhead 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 ($140.00*1860) ($37200 x 248) $62.000 74,400 31.000 81.220 46,500 47,120 74,400 $416,640 $416.640 $352,656 Overhead rate $1.18 per direct labor dollar 15416.640 $352.656) Vild Mason, the president of Speedway is concerned that the traditional cost system used by Speedway may not be providing accurate cost information and that the sales price of the competition surfboard micht not be enough to cover its true cost Assume that Speedway retains a consultant to create an activity based costing wstem, and the consultant develops the following data Driver Activity 14.400 $416,640 Total overhead Overhead rate based on direct labor dollars: Total overhead Total labor ($140.00 % 1,860) + (5372.00 x 248) $416,640 $352,656 Overhead rate $1.18 per direct labor dollar. ($416,640 - $352,656) Vikki Mason, the president of Speedway, is concerned that the traditional cost system used by Speedway 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 Speedway 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 $62,000 74,400 31,000 81,220 46,500 47,120 74,400 $416,640 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 9,920 2,480 5.270 930 124 372 124 496 9,920 2.480 62 248 $223,200 $74,400 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. 15.25.) Recreational Competition Overhead allocation per surtboard $ Total unit costs per surfboard e Textbook and Media Save for later Attempts: 0 of 3 used Submit Answer O 1 11