As Diane oamines the data, she decides that the cest of operating the oven for the rotomolded kayaks and the cont of operating the vacuam line for the composite kayaks can be directly ansigned to each of these product lines and do not need to be ansigned with the other costs.

For gurposes of this analyis, assume that Current Devigns unes $$248\mathrm{.}000$ in direct libior costs to produce $1\mathrm{.}000$ componite kapals and $$300000$ in direct labor cests to produce $4\mathrm{.}000$ rotomolded kyybs each year.

Your mnwer is correct.

One method of assigning overlead would aviget the comonon copts to each product line ly wing an asilgument band fuch as fle number of employees working on each type of kaya or the amont of factory upace uned for the production of each trpe of kayak. Dane knows that about $50$S of the aread the plan and $50$ N of the emplopees work on the composite kyals and bie remaing space and other emplopees work on the rotomolded kayds. Using this information and remembering that the costs of aperating the oven and vacuum line have been drectily malgned. determine the total amoust to be amigred to the composhe kayak line and

places.es $12525.$

$\backslash$table$[[,,$Comporite,Rotomolded$],[$Total cost assigred,$5,,5,433000],[$Cont avigend per unit,$5,,5,]]$

eTextbook and Media

Aftempts: $1$ of $3$ used

Question Part Score

$($b$)$

Another method of asdyring overhead is to use direct labor dollars as an assignment bask : Remembering that the costi of the oven and the vacuum line have been asioned directly to the product linech allocate the remaiving cosits vaing direct laber doiters as the allocatlon basls. Thon determine the amount ef everthend that thou di be molened to evch onit ed exch product line uving shis method. Round conf anlyod per unit te $2$ decinal places, ey$.125\mathrm{.}25.]$

Total cost asciened

Rotomolded

$1$

$5$

$$