what is the total unit cost per surfboard? Recreational and Competition

Roger 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 Competition 176 1,320 $528.00 $1,056.00 220.00 156.00 104.00 264.00 146 368 406 852 $122 $204 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 $44,000 52,800 22,000 57,640 33,000 33,440 52,800 $295,680 Total overhead $295,680 Overhead rate based on direct labor dollars: Total overhead Total labor ($104.00 x 1,320) + ($264.00 176) $295,680 $183,744 * Overhead rate * $1.61 per direct labor dollar. ($295,680 = $183,744) Vikki Mason, the president of Roger, is concerned that the traditional cost system used by Roger 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 Roger retains a consultant to create an activity-based costing system, and the consultant develops the following data: Amount Cost Pool Building Equipment Materials ordering Quality control Maintenance and security Setup and drafting Supervision $44,000 52,800 22,000 57,640 33,000 33,440 52,800 $295,680 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 7,040 1,760 3,740 660 88 264 88 352 7,040 1,760 44 176 $ 158,400 $52,800 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, e.g. 15.25.) Recreational Competition Overhead allocation per surfboard $ 128.6 $ 715.25 Total unit costs per surfboard $ 169796 $ 125884