Question: c ) Activity - based costing requires a cost driver for each cost pool. Use the following information to assign the costs to the product

c) Activity-based costing requires a cost driver for each cost pool. Use the following information to assign the costs to the product lines using the activity-based costing approach. What amount of overhead should be assigned to each composite kayak using this method? What amount of overhead should be assigned to each rotomolded kayak using this method?
d) Which of the three methods do you think Current Designs should use? Why?Activity-based costing cost pools and drivers
\table[[Activity,Cost Driver,Driver Amount for],[\table[[Composite],[Kayaks]],Rotomolded Kayaks],[Designing new models,Number of models,-3,],[Creating and testing prototypes,Number of prototypes,6,],[Creating molds for kayaks,Number of molds,12,],[Supervising production employees,Number of employees,12,12],[Curing time,Number of days of curing time,15,000,2,000]]
Direct labor costs for composite kayaks
Direct labor costs for rotomolded kayaks
Number of composite kayaks
$ 234,000
Number of rotomolded kayaks
$ 286,000
1,000
4,000
Percentage of employees and percentage of square feet used:
For composite kayaks
For rotomolded kayaks
50%
50%
c ) Activity - based costing requires a cost

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