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vintage run reproduces oia - rasnionea style roller Skates and skateboaras. ine annual production and sales of roller skates IS YUU units, wnuje 1,100 skateboards
vintage run reproduces oia - rasnionea style roller Skates and skateboaras. ine annual production and sales of roller skates IS YUU units, wnuje 1,100 skateboards are produced and sold. The company has traditionally used direct labor hours to allocate its overhead to products. Roller skates require 1.5 direct labor hours per unit, while skateboards require 3.25 direct labor hours per unit. The total estimated overhead for the period is $115,100. The company is looking at the possibility of changing to an activity based costing system for its products. If the company used an activity based costing system, it would have the following three activity cost pools: Expected activity Estimated Activity cost pool overhead cost Roller skates Skateboards Total Setup costs $6,650 385 260 645 Engineering costs $16,600 430 630 1,060 Maintenance costs $91,850 2,375 2,148 4,523 The overhead cost per skateboard using an activity - based costing system would be closest to (Round all answers to two decimal places.) O A. $49.68 B. $46.28 C. $33.04 OD. $62.41
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