Current Attempt in Progress Page 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 1,200 $480.00 Competition 160 $960.00 140.00 96.00 134 370 $110 200.00 240.00 336 776 $184 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 (596.00 x 1.200) + ($240.00 x 160) $40,000 48,000 20,000 52,400 30.000 30.400 48,000 $268,800 $268.800 $153,600 Overhead rate * $1.75 per direct labor dollar ($268.800 - $153.600) Vikki Mason, the president of Page, is concerned that the traditional cost system used by Page 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 Page retains a consultant to create an activity-based costing system, and the consultant develops the following data: De Active Total overhead Total labor ($96.00 x 1,200) + ($240.00 x 160) $268,800 $153,600 * Overhead rate x $1.75 per direct labor dollar. ($268,800 + $153,600) Vikki Mason, the president of Page, is concerned that the traditional cost system used by Page 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 Page retains a consultant to create an activity-based costing system, and the consultant develops the following data: Driver Activity Recreational Competition Cost Pool Amount Driver Boards Boards Building $40,000 Square footage 6,400 1,600 Equipment 48,000 Machine hours 3,400 600 Materials ordering 20.000 Number of orders 80 240 Quality control 52,400 Number of inspections 80 320 Maintenance and security 30,000 Square footage 6,400 1,600 Setup and drafting 30,400 Number of setups 160 Supervision 48,000 Direct labor cost $144,000 $48,000 $268,800 40 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 Total unit costs per surfboard