Office hour

359.8 (1.94). AP lanikan was evaluating the protability of her bike shop, which sells bicycles, skateboards. and frisbee golf items. Since the frlsbee golf segment was new, she wasn't surprised to see a segment loss after allocating her selling. general, and administrative costs to the three product areas using one rate, based on percentage of sales revenue. Aer looking more closely, though, she realized the selling, general, and administrative costs came from three main actlvity areas and could be allocated using more specific rates based on cost drivers as follows. ' SG&A Costs Total Cost Quantity of Cost Driver Management salaries $60,000 1,000 hours devoted to managing the lines Facility costs 20,000 2,000 square feet of space occupied Insurance and other 10,000 Percentage of sales revenue if the frisbee golf line requires 30 hours of management time and 150 square feet of space, and it generates just 5% of total revenues for the shop, how much of these total SGSLA costs were initially allocated to the golf line? How much of these costs would have been allocated had Ianikan used activity-based rates