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Sea Worthy makes 2 differenttypes of custom boats commercial fishing and sail boats both forrecreation and competition The company consists of two differentdepartments design and production

Sea Worthy makes 2 differenttypes of custom boats, commercial fishing and sail boats both forrecreation and competition. The company consists of two differentdepartments, design, and production. The company has decided toallocate overhead costs in each of the two cost pools. The directlabor cost per hour is $18. Data on estimated overhead follows:

Activity

Driver

Estimated Overhead Cost

Sailboats Estimate

Fishing Boats Estimate

Product design

# of designs

$130,000

45 designs

55 designs

Quality control

# of inspections

$119,560

560 inspections

420 inspections

        If the company designsand produces and sells 48 sailboats, each sailboat requires 1,800labor hours and 12 inspections, how much overhead will be assignedto each sailboat produced?

Mar 19 2020 View more View Less

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